Menu
Spotify gets ready to battle Apple Music with fresh pile of cash

Spotify gets ready to battle Apple Music with fresh pile of cash

A combination of more content and data analytics is its recipe for success

Spotify's CEO Daniel Ek has secured a new round of financing for his company

Spotify's CEO Daniel Ek has secured a new round of financing for his company

Spotify isn't going to let Apple walk all over it, and has secured a new investment round to defend its position in the increasingly competitive streaming music sector.

The launch of Apple Music signals a new dawn for the streaming music sector, where vendors such as Spotify don't think offering songs is going to be enough to compete and become profitable. Spotify last month launched a new version that added podcasts and video content.

To help the company grow, Spotify has closed a US$526 million round of funding valuing it at about $8.5 billion, the Wall Street Journal reported on Wednesday.

Swedish telecom operator TeliaSonera confirmed it is investing $115 million for a 1.4 percent stake in Spotify. The two companies have already been working together for more than five years.

The expanded partnership includes a joint TeliaSonera-Spotify team that will collaborate on data analytics and advertising, the two companies said without offering any details. However, it looks like Spotify wants to take greater advantage of the 45 million users who use its service for free. Spotify also has approximately 15 million paying users.

While doing that on the back-end, the addition of more content is what Spotify hopes will make its service more attractive to users. At the same time company can't afford to lose focus on music streaming. With that in mind, the May product launch also included features such as customized playlists for runners.

The music streaming service market is getting very crowded with vendors such as Rdio, Pandora, Google and Spotify competing with newcomers such as Tidal and soon Apple.

The competition should result in better products for users. Also, the competition isn't all bad for the vendors: it should help raise the profile for streaming music. There is still room for a lot of growth with 2.6 billion smartphone subscriptions last year, and an expected 6.1 billion in 2020, according to a recent survey from telecom equipment maker Ericsson.

Send news tips and comments to mikael_ricknas@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetTeliaSoneraInternet-based applications and servicesMusic and audioSpotify

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments