Spotify gets ready to battle Apple Music with fresh pile of cash

A combination of more content and data analytics is its recipe for success

Spotify's CEO Daniel Ek has secured a new round of financing for his company

Spotify's CEO Daniel Ek has secured a new round of financing for his company

Spotify isn't going to let Apple walk all over it, and has secured a new investment round to defend its position in the increasingly competitive streaming music sector.

The launch of Apple Music signals a new dawn for the streaming music sector, where vendors such as Spotify don't think offering songs is going to be enough to compete and become profitable. Spotify last month launched a new version that added podcasts and video content.

To help the company grow, Spotify has closed a US$526 million round of funding valuing it at about $8.5 billion, the Wall Street Journal reported on Wednesday.

Swedish telecom operator TeliaSonera confirmed it is investing $115 million for a 1.4 percent stake in Spotify. The two companies have already been working together for more than five years.

The expanded partnership includes a joint TeliaSonera-Spotify team that will collaborate on data analytics and advertising, the two companies said without offering any details. However, it looks like Spotify wants to take greater advantage of the 45 million users who use its service for free. Spotify also has approximately 15 million paying users.

While doing that on the back-end, the addition of more content is what Spotify hopes will make its service more attractive to users. At the same time company can't afford to lose focus on music streaming. With that in mind, the May product launch also included features such as customized playlists for runners.

The music streaming service market is getting very crowded with vendors such as Rdio, Pandora, Google and Spotify competing with newcomers such as Tidal and soon Apple.

The competition should result in better products for users. Also, the competition isn't all bad for the vendors: it should help raise the profile for streaming music. There is still room for a lot of growth with 2.6 billion smartphone subscriptions last year, and an expected 6.1 billion in 2020, according to a recent survey from telecom equipment maker Ericsson.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Internet-based applications and servicesSpotifyMusic and audioTeliaSonerainternet

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?