Spotify didn’t seem to care all that much about it’s IPO, this week, and people noticed.
Going all out for an IPO has become sort of a tradition for startup companies. A chance to tell the world that we are here and we are a big deal. Spotify already knows it’s a big deal and with it’s clear cut business model, it doesn’t have to trick users or even artists to put their music on their service.
It’s got a model that’s better than Amazon Prime and a user base that rivals Netflix. It’s a sweetheart deal for music lovers and virtually no music is out of reach for $10 a month. Even if it continues on this projection without adding any new features the popular streamer is set to double it’s users and turn a profit by 2021.
But Spotify isn’t stopping there and it shouldn’t. It’s more than a streaming service. It’s a social network, it’s a technology company, and it’s also a radio station. I see a few things happening in this space that Spotify can easily beef up and according to a press release it has a major news announcement at the end of the month that’s already got people talking.
1. Hardware. When a software company tries to branch out in order to make more money, they usually turn to hardware. It was spotted by Spotify users that Spotify has asked them to get ready for a new hardware product from them. An in car voice controlled speaker with touch panels for playing music. Much like a stereo system mixed with an Alexa Echo-type device. The device will beef up the subscription to $13 a month.
2. News/media. Other people noticed that a “news announcement,” was an odd way for Spotify to phrase the invitation that the media got. So people who noticed that the app notification was way back in February and nothing ever came of it yet, are wondering if it will make an appearance alongside other features to the service. Could Spotify be planning an NPR-like news section? Professional news content is highly sought after and podcasts have millions of subscribers. A mixture of these two models could prove well that Spotify may be able to fix the fake news problem. Perhaps a tiered service/subscription service bundled with news and other cable channels or NPR?
3. Radio. Troubled brand iheartmedia which tried to become a poorly redesigned spotify knockoff has filed for bankruptcy. It’s highly unlikely that the radio company can restructure enough to pay off the $20 Billion debt on the books. This could be the perfect time for Spotify to acquire ihearts more popular brands like the iheartmedia awards and it’s popular DJs around the country. However, it would be a huge acquisition for the newly minted publicly traded company and Spotify has never purchased anything that big before.