Is this the downfall of Spotify? Most likely not, but things aren’t looking too good for the music streaming service. Despite hitting a whopping 87 million users, competitors like Apple and YouTube Music are putting pressure on the company. Just recently, Spotify’s shares fell to $126.75, a record low never seen before. There’s also been a lot of turmoil behind the scenes that many people are not aware of. The company has lost several executives including former Chief Marketing Officer Seth Farbman this past September. Losing crucial team members is resulting in lost profits and potential users.
Additionally, Spotify is having trouble competing with Apple Music at the international level. More people are choosing Apple Music and in return, the Apple team is dominating the US, Canada, and Japan markets.
As you have probable seen recently, Spotify is offering US paid subscribers a free Google Home Mini in an attempt to gain more users. While this tactic may work, it will first take a huge hit in their revenue before showing improvement.
It seems as if Spotify is just catching up to trends people have been asking for. For example, Spotify just released an official app for the Apple Watch, a must to even catch up with Apple. What music streaming service do you use on a daily basis and if it’s not Spotify, why not? Time will tell if their recent marketing ploys will help them on their road to profitability.