Unlike Apple, Spotify has a single line of business whose profits, for the most part, go to pay the record companies. For a couple of years, he has bought various podcast companies, in order to have a higher margin of income. But, it is not the only move that the Swedish company plans to make to diversify.
Between May and June, Spotify made several forays into the world of virtual concerts, motivated by the restrictions of the pandemic. Apparently, these virtual concerts have been quite successful among users and according to The Information, the company is studying increasing this type of concerts in addition to live events.
If this move is successful it would 3 positive points: a better relationship with artists (helping artists to earn new income), a new source of income for the company and would offer a service that is not available at its biggest rival, Apple Music.
Spotify may use customer data from its platform to help artists plan and organize concerts virtual and live without having to make forecasts based on expectations.
Spotify organized various virtual events between May and June, charging $ 15 to access as entry. It is likely that at first it will not be a significant source of income, but in the long run it can be, since there is no other company that currently offers this service.
At the moment, Spotify does not plan to compete with companies such as LiveNation or Anschutz Entertainment Group, at least initially. It is likely that reach agreements with these event organizing companies to sell virtual tickets to concerts that take place around the world.
Until 2017, Apple celebrated the iTunes Music Festival (renamed Apple Music Festival) before being canceled, an event that brought together the most important artists of the moment and that could be followed for free from the Apple Store and from the Apple Music application.
