With the live entertainment sector in disarray, Spotify has been one of the main revenue sources for musicians lately. The streaming platform has also secured enough exclusive content licensing deals leading up to the pandemic era to cement its future in the marketplace. Could the next step for the company be a move into virtual and live concerts?
According to media publication The Information, there could be plans in place to move Spotify into the live entertainment sector. Over the years, the corporate tech giant has fallen into disrepute among the artists it supposedly serves, due to its extremely low royalty rate per stream. So apart from diversifying revenue shared with record labels, the move into live events could foster a new connection with musicians on the platform, as well as provide new opportunities in the future.
Spotify certainly has the numbers
Spotify has access to a huge amount of relevant data that could prove a major advantage for the planning of these new live music events. The move also differentiates the company from Apple’s platform, and what it has done with music and podcasting over the years. Apparently, this diversification is just that, and not a play to compete with big-league events corporations like LiveNation or Anschutz Entertainment. Moving into events with the backend of a tech company like Spotify makes this an exciting development, and well worthy of the attention of musicians and promoters alike. However, this expansion is not yet confirmed, and diversifying a company from top-down does increase the risks considerably.
“Landmark” video series
Spotify does have all the necessary reach and a wealth of app users. So migrating traffic into new revenue like online ticketing and events coverage shouldn’t be too hard. In the past, the idea of live music events has come up in the company’s slightly short-lived “Landmark” video series. It has also toyed with live events more recently. This was in the form of several prerecorded virtual concerts, such as with the likes of The Black Keys. Were these events the experimental phase of a larger plan for rolling out live concerts? We’ll just have to wait and see. There will certainly be room for innovation as we all impatiently await the return of the live entertainment industry.
More Information on Spotify
- Spotify’s expansion in The Information
- Keep up to date in the Spotify newsroom
- Audio rooms for musicians
- Introducing Spotify Greenroom
- Spotify for Podcasters
- More Spotify news here