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COCA-COLA

Coca-cola joins forces with Swedish Spotify

Spotify and soda superstar Coca-Cola on Wednesday joined forces in a move that promises to put a global spotlight on the internet music darling.

Published: 19 April 2012 07:27 CEST
Coca-cola joins forces with Swedish Spotify

The companies announced they will combine Coca-Cola Company’s reach and brand appeal with Spotify’s online music platform.

“This is not an advertising deal,” said Coca-Cola head of global sports and entertainment marketing Emmanuel Seuge during a press event in New York City.

“The way we engage with our consumers has to go way beyond the logo.”

Spotify will provide the technology to power Coca-Cola Music offerings and be integrated into the global beverage company’s Facebook pages.

“Coca-Cola is the most recognized and respected brand in the world and we

are proud to be their music partner,” said Spotify founder and chief executive

Daniel Ek.

“Spotify and Coca-Cola both believe that music, technology and creativity can connect people around the globe.”

Coca-Cola boasted that using music to connect with young customers has been a big part of the company’s 126-year history, dating back to branded sheet music in the late 19th Century and sponsoring on-air shows when radio ruled.

The partnership will include Coca-Cola software applications that tap into the Spotify platform. The first new “app” will be unveiled for the 2012 Olympics in London, according to Coca-Cola.

Spotify, which was launched in Ek’s native Sweden in 2008, boasts a library of 15 million tracks and is adding about 20,000 a day.

The music streaming service is available in a dozen countries in Europe and launched in the United States in July.

Spotify touts having more than 10 million active users and 2.5 million paying subscribers.

Spotify offers three services: a free, ad-supported streaming service, an ad-free $4.99 a month plan for computer listening, and a $9.99 a month plan allowing subscribers to download as many songs as they want to a mobile phone.

AFP/The Local

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BUSINESS

Spotify reports strong growth in users as it announces price rise

Spotify on Tuesday reported a bigger-than-expected rise in active users at the end of the second quarter, a day after the music streaming giant announced price increases for its premium service.

Published: 25 July 2023 14:30 CEST
Spotify reports strong growth in users as it announces price rise

The Swedish company, which is listed on the New York stock exchange, said it’s total active users rose 27 percent to 551 million year-on-year, or 21 million more than it expected. The number of paying subscribers also rose, with a 17 percent jump to 220 million — three million more than expected.

On Monday, the company announced it was raising its prices for premium subscribers “across a number of markets around the world,” following in the footsteps of similar moves by competing music services from Apple and Amazon.

Despite the boost in users, Spotify reported a bigger operating loss of 247 million euros ($273 million) in the second quarter, compared to a loss of 194 million euros for the same period a year earlier.

The company said it was “primarily impacted by charges related to our actions to streamline operations and reduce costs.”

In early June, Spotify announced it would be cutting some 200 positions working with podcasts.

That move came after a January announcement that Spotify was cutting around 600 jobs — equalling about six percent of its workforce — following similar moves by other tech industry giants.

Spotify has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as
podcasts. It has invested over a billion dollars into podcasts alone.

In 2017, the company had around 3,000 staff members, more than tripling the figure to around 9,800 at the end on 2022.

The company has never posted a full-year net profit and only occasionally quarterly profits despite its success in the online music market.

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