Spotify, the music streaming and arch rival of Apple Music service, is in “advanced talks” to get the SoundCloud audio distribution platform, as reported by The Financialtimes.
For the moment, the information available regarding this possible acquisition is scarce however, this would allow Spotify not only increase your volume of users if not also increase the available musical offerings slammed with all contents, and mostly unpublished, which currently offer a SoundCloud users.
Spotify and Apple Music, a growing enmity
The rivalry between Apple Music and Spotify emerged even before the birth of the Apple streaming music service. From the 30 of June of the last year, time in that Apple Music made its debut, the clashes have been constant, even accusing Spotify to Apple of find is in situation of disadvantage in the App Store.
As the months have gone by, Apple Music has grown in number of users. The latest official figures speak of 17 million users of payment compared to the 30 million that Spotify has. The growth of the platform of Apple is being really accelerated and, of follow so, not pass much time until finally exceed to the veteran service musical.
On the other hand, the record companies constantly pressuring Spotifand. His option of subscription free (in Exchange for advertising) not just of like to them tycoons of the industry musical, nor to many artists, and to the same time you require match them payments that make them of Cupertino (currently Apple pay a 58% of them benefits facing the 55% that pays Spotify).
Thus the things, is evident that the maximum rival of Apple has that undertake any strategy that you allow keep is in the first position of them services of music in streaming, by over mostly of Apple Music, but also of Pandora, Deezer, Google Play Music, etc, although these already are rival more small.
New strategy: buy listeners
According to has informed The Financial Times, this strategy, of time, is based in the option more simple: buy to a competitor for thus increase of hit its number of users and the offer musical of its catalogue. The first lock is Souncloud with whom, according to the newspaper, Spotify is already in “advanced talks” to its acquisition.
SoundCloud, that allows to them users upload, advertise and share recordings of audio that van from the music to podcasts, has already with more than 175 million of listeners in total, which could provide a great influx of customers to Spotify and give you an important advantage on Apple.
Spotify has 40 million of subscribers of payment in comparison with them 17 million of subscribers of payment of Apple Music, but the numbers of this have State growing constantly since its launch 2015. Apple Music also has the loyalty of users of Apple which, in theory, encourages other users to abandon them in favor of the native service.
As said before, Apple Music grew in number of subscribers, also increased the tension between both companies. Both services have become top rivals and have staged some public feuds relating mainly to questions of exclusivity and the presence in the Apple App Store. According to Spotify, it Commission of the 30% that Apple receive in Exchange for each sale / subscription made through its store of applications, it located in a situation of disadvantage facing Apple Music, by what when a user want to subscribe is to Spotify through the App Store, must pay a 30% more than it rate usual, since Spotify not assumes that cost.
SoundCloud has recently introduced a new payment service designed to compete with Spotify, Apple Music, Pandora and other music streaming options. SoundCloud Go has a cost of $ 9.99 and gives users access without advertising to 125 million songs, including premium content.
With the, still hypothetical, acquisition of SoundCloud, Spotify could add all that content created by users to its own catalog of music, offering customers more content original to listen along with the already existing.
