Spotify reorganises content for premium users
Streaming music market leader Spotify has been testing a new look for its premium users’ content library that has finally been given the green light. The basic takeaway is that podcasts and music will now be separated, and some new functionality will be added. That’s a change from the current system, where all user content is jammed together at the top: playlists, podcasts, songs, albums, artists… all without organisation. In separating these elements, Spotify is making things easier for its users, and, crucially, finding a way to put podcasts in front of eyes.
Spotify’s share price has appreciated by 30% so far this year
Source: Yahoo Finance
Podcasts are the big thing for Spotify at the moment. The company is looking to find juicier profit margins by adopting a Netflix-like approach to original content. At the moment, all its music is licensed from record labels, which means the bulk of its revenue gets eaten up in royalty payments. If the company can produce its own stuff, then it gets to keep a larger chunk of the cash that stuff generates. Having recently ditched its attempts to do so with music (Spotify, until recently, has allowed select artists to upload their songs and albums directly to the platform), podcasts look to be its best bet for doing so.
And, to be clear, Spotify is not doing this half-heartedly. A couple of major acquisitions in, Spotify is already the world’s biggest podcast company by some stretch. The big question for the company now is how, exactly, this content can be further monetised.
Check out the Spotify library’s new look on the video below:
Dominion holds Spotify in its Global Trends Ecommerce Fund.
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