Spotify to Feature In-app Sales in Move to Capitalize on Market

For the past five years, the music industry has been revolutionized by the mass dissemination and use of streaming platforms. Spotify and Apple Music, among others, have proved crucial in reshaping the experience of music listening. However, in an increasingly competitive industry, these platforms continue to innovate and better their services to attract new clients. In this sense, Spotify has announced a new feature, without an official release date, which will promote the sale of personalized goods, merch, and other items on the platform.

This represents a crucial update in Spotify’s business, as the platform will for the first time feature more than just songs on its app. The service will be integrated with the Shopify virtual store platform and will let artists manage their own products. It is an interesting novelty, and not only for singers and bands with a large audience but also for new artists needing financial support to grow their musical careers.

Streaming Success

This new feature comes after the release of a report by the RIAA, the agency that controls the distribution of recorded songs, indicating a growth in the music industry of 27% in the first half of 2021. It is estimated that over $7.1 billion was generated in revenue, which marks a substantial increase in comparison to the $5.1 billion recorded in the same period last year. Moreover, the report highlights that 84% of the income comes directly from streaming platforms such as Spotify, Apple Music, and Deezer.

These impressive numbers come as a result of a long-term strategy from streaming services, who attract a larger audience, by offering a free trial period or free service plan. This is similar to the strategy of other entertainment platforms. For instance, tv and film streaming platforms offer a free trial for new users, while many online casinos feature free spins and bonuses as welcoming gifts. These are appealing strategies, particularly in the case of casinos. And while sometimes it may be difficult to keep up with all the offers, how to choose a new online casino is easier than you expected, as websites such as Bonus.ca offer guides on the best deals and free deposits helping gamblers take advantage of these business strategies.

Ecommerce and streaming

This strategy, which combines streaming and eCommerce, will allow artists to advertise merch and sell products signaling the release of new music and special editions. Currently, this new service is already being tested in several countries, such as the United States and Canada, and is expected to become a permeant feature on Spotify.

While this new tool is the first of its kind in music streaming platforms, it is part of a larger movement across companies working in virtual entertainment. With global eCommerce sales growing 31% in June 2021 in comparison to June 2020, this business has become particularly appealing for all sorts of industries. For instance, Instagram and Facebook, have already integrated virtual stores on their platforms, diversifying their range of products and services.

Spotify’s strategy is no different. The company’s business structure was already based on selling a product, in the form of music artists and their work and so marketing physical products related to the music industry is a very logical next step. Likewise, they are currently partnering with Netflix by creating a hub where listeners can access exclusive themed playlists.

One thing’s for sure, the entertainment industry is always changing, and this kind of integration is set to become the new norm. The only question is which companies and platforms will be the first to spot these types of opportunities.