Spotify sees cars as potential platform to expand

The Swedish online streaming service Spotify wants to expand and operate on as many platforms as possible, such as the phone, the iPad and now also the car. In which way Spotify will able to do this is not totally clear yet, but probably through an Application Programming Interface (API), with which (car) companies can develop services to link with Spotify. This could lead to more (paid) subscriptions for Spotify and thus more revenues. Previously, the SYNC API of Ford was used to link it to the API of Spotify. This was not an official collaboration between Spotify and Ford, but it is a good example of how Spotify can be integrated in cars.

Spotify offers music online through streams, instead of though downloading and allows users to listen to music free of charge. Advertising revenues support the free version. There are also paid subscriptions. In that case the user pays for the music and in return gets more options. An example thereof is that you can listen to the music without having internet connection.

It’s clear that Spotify is growing rapidly. The streaming service counts about 1.9 million users. In countries where it already exists, such as Sweden, Finland, the Netherlands and the United States, Spotify wishes to gain more members and Spotify also wishes to expand to even more countries around the world. Especially in Sweden and Finland Spotify is popular, because it offers its service with a combined subscription for television and broadband of internet provider Telia. In the Netherlands, Spotify also seems to be successful. The music catalogs including the four major record labels EMI, Warner, Universal and Sony were made available and Spotify in return pays music royalties. Also, collective management organization Buma / Stemra has a licensing agreement with Spotify to get the licenses of the copyright protected songs of the copyright holders. Clearly, Spotify demonstrates it is a fully legal alternative to downloading from illegal sources.

Read more about Spotify on FutureofCopright.com:

- Spotify on its way to be profitable over 2010

- Spotify to enter “uninteresting” Belgian market this summer
 
- Spotify launches in the U.S.

Reference: Emerce