Spotify makes major push into US with FREE Google Home Mini for Family Plan users
Market-leading music streaming platform Spotify is offering account owners on Spotify Premium Family Plans an incredibly attractive free gift: a Google Home Mini! The company is partnering with search engine giant Google to give out the voice assistant to account owners in the US who sign up for the offer between November 1 and December 31. This is an incredibly attractive offer that is likely to drive more families onto Spotify’s top tier – and it’s also a canny strategic play.
Negative sentiment on the market weighed down Spotify’s share price over the past five days
Source: Yahoo Finance
Amazon Music is growing fast, and what’s pushing it forward is rapid adoption of the company’s market-leading Echo smart speaker (also known as Alexa – technically, the name of the Virtual Personal Assistant that comes along with it). Once customers have an Echo, they tend to get pulled into Amazon’s easy-to-use, and incredibly ‘sticky’, ecosystem… which includes Amazon’s own streaming music service. Clearly, the company wants to get families using speaker to stream music before they get hold of an Echo.
This makes sense, because YouTube Music and Google Play Music are still a long way from being competitors to Spotify. But Google’s Home speaker growing in popularity. Piggybacking off the bac of that popularity, and beating Amazon to the punch offers Spotify a win-win scenario.
It’s also true that people who use a music streaming platform like Spotify, Apple Music or Amazon Music, are 240% more likely to use a smart speaker. When kids go to college, many of them with streaming accounts are going to take the plunge and invest. And they’re most likely to buy the system they’re familiar with from home. Spotify is hoping that getting the Google Home into family houses across the country will make new students less likely to buy an Amazon Echo and, thereby, adopt Amazon Music as their streaming platform of choice.
Dominion holds Spotify, Alphabet (the parent company of Google), and Amazon in its Global Trends Ecommerce Fund.
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