Spotify, the service of music in streaming and maximum rival of Apple Music, is in “talks advanced” to do is with the platform of distribution of audio SoundCloud, according to has informed the daily The Financial Times.
By the time, the information available to the with regard to this possible acquisition is scarce however, this would allow to Spotify not only increase of hit its volume of users if not also increase the offer musical available with all them contained, e its most unpublished, that currently offers SoundCloud to their users.
Spotify and Apple Music, an enmity increased
The rivalry between Apple Music and Spotify emerged even before the birth of the service’s music in streaming of Apple. From June 30 last year, time that Apple Music made its debut, the clashes have been consistent, even accusing Spotify to Apple of being disadvantaged 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 Apple platform is really being accelerated, and keep on like this, will not be long until finally exceed the veteran music service.
On the other hand, the companies record pressed constantly to Spotifand. Your choice of free subscription (in Exchange for advertising) just do not like the tycoons of the music industry, nor to many artists, and at the same time they demand equal payments that make the Cupertino (currently Apple pay 58% of the benefits compared to the 55% pays Spotify).
So, is clear that the arch rival of Apple has to undertake some strategy that allows him to keep in the first position of the music streaming services, above especially Apple Music, but also of Pandora, Deezer, Google Play Music, and so on, even if these are already smaller rivals.
New strategy: buy listeners
As reported by The Financial Times, this strategy, at the moment, would be based on the simplest option: buy a competitor to increase hit their number of users and the musical offerings of its catalogue. The first padlock is Souncloud with who, according to the daily, Spotify already is located in “talks advanced” for 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 has also with the loyalty of them own users of Apple that, in theory, encourages to them users of other services them abandon in favour of the service native.
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, the 30% Commission that Apple receive in Exchange for each sale/subscription made through its app store, places it at a disadvantage against Apple Music, by which when a user wishes to subscribe to Spotify through the App Store, must be paid 30% more than the usual fare, since Spotify does not assume 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.
