New study claims Spotify will “beat” Pandora by 2022
If you’re into streaming music services, you’re probably aware of Spotify and Pandora. The latter is by far the largest service (with 75 million listeners), but the former is growing faster (this year, Spotify will have almost 60 million listeners. Last year, it had 50 million). According to a new study from eMarketer, this puts Spotify on course to disrupt and overtake Pandora by 2022. That’s a big goal for the smaller service, and represents a major market share grab.
This picture is great news for Spotify – if it pans out. According to eMarketer’s vice president, Pandora is struggling to convert free users into paid subscribers, while Spotify is simply focusing on enhancing its service and offering special packages to customers “that are likely to embrace them.” He added that the data for the study had been gathered from “internet users of any age who listen to Pandora or Spotify on any device at least once per month.”
Spotofy’s share price has increased by 26% year to date
SOURCE: Yahoo Finance
One of the things that could help make this rosy-for-Spotify picture come true is a new deal with Samsung, which will see Spotify pre-installed as the default music service on all its devices. Deals like this one can’t be overestimated in importance: they not only drive higher adoption rates among new listeners, but also reinforce brand perception across the board.
Spotify’s co-founder and CEO, Daniel Ek, made the following comment on the back of the Samsung partnership news: “Since Spotify’s inception, we’ve studied how people use Spotify. We know that listeners stream different kinds of music at different times, in different places, and most importantly, on different devices. We think music should be easy to access on ALL of your devices – and we want it to be seamless to switch from one device to another.”
Dominion holds Spotify in its Global Trends Luxury Fund.
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