The service offers unlimited free (with occasional ads) streaming to members in the United States, Hong Kong, Singapore, Malaysia, Australia and New Zealand. Now, the service is available to anyone with access to the Spotify site. Until 2013, Spotify was an "invite-only" application where people had to receive an invitation from someone who had an account.
When the service first launched, developers simulated a controlled growth to slowly expand the software.
Not only is it helpful for users, but the partnership should also aid in both companies' competition with Apple ( AAPL -3.73%).Swedish developers first created Spotify in 2006 and launched it two years later. Not to mention, the users are happier since this partnership enables easier sharing and reduces the friction of having to move between apps.įor shareholders of either company, this feature looks like a plus. Making its platform accessible from anywhere should give existing users more of a reason to resubscribe, ultimately boosting retention.Īs for Facebook, even though users might be listening to audio from Spotify, this incentivizes them to stay on Facebook's platform, and more time on the platform means more advertising dollars for Facebook. For Spotify, not only could this attract potential new subscribers as it grants greater exposure to Facebook's 2.85 billion monthly active users, but it also serves as another step in Spotify's larger ubiquity strategy. Though it's always fun to try to pick which company is getting more out of a partnership, this integration should create value for both platforms.
Whether it's Megaphone or Anchor connecting sponsors to podcasts, or Spotify itself controlling the ad-supported freemium accounts, these in-audio ads aren't under Facebook's purview. While there weren't any details about potential revenue-sharing agreements, it's safe to assume that Spotify is still administering the advertisements. Since this partnership means sharing audio tracks between family and friends will be easier than ever before, Spotify advertisers will be getting even more exposure.
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