Unlike Apple, Spotify has only one line of business whose profits are largely used to pay record companies. For a few years, he bought out various podcast companies, in order to have a higher margin of income. But, this is not the only step that the Swedish company plans to take to diversify.
Between May and June, Spotify made several forays into the world of virtual concerts
If this movement is successful, it 3 positive points: a better relationship with artists (helping artists to obtain new income), a new source of income for the company and would offer a service that is not available at its maximum competitor, Apple Music.
Spotify may use customer data from its platform to help artists plan and organize concerts virtual and live without having to forecast based on expectations.
Spotify has organized several virtual events between May and June, charging $ 15 for access as entry. It is likely that at first it will not be a major source of income, but in the long run it may be, as no other company currently offers this service.
For now, Spotify has no plans to compete with companies like LiveNation or Anschutz Entertainment Group, at least initially. It is likely that enter into agreements with these event organizing companies to sell virtual tickets for 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 which could be followed for free from the Apple Store and from the Apple Music app.
