[ad_1]
Music streaming giant Spotify is shutting down two years after launching its live audio app, Spotify Live.
“After a period of experimentation and learning about how Spotify users interact with live audio, we have decided to terminate the Spotify Live app,” the company said in a statement issued to multiple news sources. rice field.
“We believe there is a future for live fan-creator interaction in the Spotify ecosystem. However, based on our learning, it no longer makes sense as a standalone app.”
However, the company said it plans to continue with some aspects of live audio, primarily “listening parties,” and has seen “promising results.”
according to music union, This first broke the news of Spotify Live’s closure, but some of the app’s shows will continue as non-live programs on the main Spotify app.
Spotify is one of several companies to jump into the live audio space after the rapid rise of clubhouses in 2020.
The Stockholm-based music streaming service acquired Betty Labs and its app Locker Room for €57 million in March 2021. The Locker Room hosted live audio shows primarily focused on sports.
Spotify soon rebranded the app to Greenroom and expanded its content to include weekly music, lifestyle and entertainment programming. Shows included Lorem Life with Dev Lemons and Max Motley, Deux Me After Dark with Deuxmoi, and Internet People Live with Zack Fox.
A year later, Spotify rebranded the app again, this time naming it Spotify Live, and incorporated some of its features into the main Spotify app.
But by 2022, Clubhouse’s luster faded as it became clear that the market for live audio apps was limited.
Various media companies that had invested in Clubhouse competitors began scaling back or closing their efforts. Reddit has closed Reddit Talks. Facebook has scaled back its investment in live audio capabilities.
Nevertheless, some online companies continue to invest in and expand their live audio services, notably Amazon Music and Apple Music.
The first signs of problems with Spotify Live came in December 2022 when Spotify canceled some of its live shows. To Me After Dark.
By early 2023, the company was slashing investments and laying off staff as part of its cost-cutting measures.
Spotify announced more than 500 job cuts in January, making it one of a number of prominent tech companies to announce job cuts amid mounting economic headwinds, along with Amazon and Meta.
Co-founder and CEO Daniel Ek says Spotify’s operating expenses will grow twice as fast as its revenue in 2022.
“Like many other leaders, I want to maintain a strong tailwind from the pandemic and believe our broader global business and reduced exposure to the impact of the slowdown in advertising will isolate us. was
“In hindsight, I was too ambitious to invest in prior revenue growth. …I take full responsibility for the moves that got us here today.”
Spotify spent about $1.2 billion to grow its non-music business between 2019 and 2022, according to MBW analysis. This does not include spending on talent and content deals, such as the May 2020 acquisition of Joe’s Logan podcast. Signed the platform with Barack and Michelle Obama for $25 million.
Spotify’s current predicament may be a classic case of overspending and under-pricing by a growing tech company. The company hasn’t raised its $9.99 subscription price in the US since it entered the market in 2011.global music business
[ad_2]
Source link
