Cooperation between Spotify and Samsung
Author: Mario Schmidtgen
Spotify’s stock rises about 6% overnight
The mobile phone manufacturer Samsung is from now on cooperating with the music streaming service Spotify. On Thursday Daniel Ek, Spotify CEO, announced that the music app will be preinstalled on all Samsung devices in the future. With this step, Spotify could reach millions of new users.
In addition to the standardized installation of Spotify, it should also be possible to use Spotify with the “Samsung Smart Things” app. Through this users can play the music on different devices in several rooms at the same time and do not have to stop the music when changing rooms.
Moreover, Spotify should become the only music service that is controllable via the language assistant Bixby. As a result, Spotify can address completely new target groups, since the language assistant is also used by people who did not know Spotify yet.
Investors are very pleased with this news. Within one day, the value of the stock rose by six percent. Spotify was just listed on the stock market in April. Since then, Swedish company shares have risen by about 27 percent.
The figures for the first half of 2018 published in July showed that currently around 180 million people use Spotify. Compared to the previous year, this is an increase of around 30 percent. 83 million users pay for the service, so they are so-called premium users. And the company’s sales also increased in the first half of the year.
But despite rising sales Spotify continues to be in the red. The company burned 131 million euros in the first half of 2018. Growth simply has its price.