Spotify is apparently considering expanding into the events game, according to a recent report from The Information. While nothing has been officially confirmed by the music streaming giant, “people familiar with the situation” have shared that it may soon be making a move into live events.
A huge advantage of a company like Spotify facilitating live events is its extensive consumer data, which it would plan to leverage to help artists plan more effective events and find opportunities to plan live shows in areas that wouldn’t necessarily be a stop on a normal tour.
Spotify has already shown interest in virtual events, as it began to display virtual events listed on its partner Songkick last fall to help generate awareness with fans, and it also hosted its own virtual concert series in May and June. The shows were all pre-recorded, and tickets were $15.
While this hasn’t (yet) become a recurring experience, it wouldn’t be a huge stretch to imagine Spotify continuing to put on virtual events and even further expanding its business into live events as well. The Information notes that such a move could help Spotify diversify its revenue, although the company isn’t planning to compete with the likes of Live Nation or AEG, so “the medium-term revenue impact is likely to be minimal.”
Other potential benefits for Spotify noted by the report include differentiating its service from Apple Music, which hasn’t released an official subscriber count since 2019, but is more than likely still trailing behind Spotify.
In addition, Spotify is reportedly hoping that this new venture could help improve its relationship with artists, which has often been rocky — Taylor Swift most famously complained about the company’s compensation policy back in 2014 — and which it has been attempting to repair.
Whether or not Spotify actually decides to move forward with these plans, the fact that they’re even considering this move demonstrates the ongoing shift in the music industry as the lines between in-person and streaming platforms and experiences are becoming increasingly blurred.