It was something that had to happen. Spotify has announced the launch of a lightweight playback application called “Stations” throughout the United States that is within the strategy of its ad-supported service.
The application of Stations It is being promoted as an application specialized in the user experience, for those people who want a “more radio-like experience”.
This is in comparison to custom playlists, which limit the discovery and surprise element of the radio. The service interface is also considerably simpler compared to the Spotify application, as it aims to attract audiences who are not so accustomed to digital content.
Note that the general gross margin of the company continues to fall, currently at 11% (although the Premium version rises to 26%).
How can you remedy this?
Expert voices point out that by investing in radio offers and advertisements. Until recently, the overall earnings of recorded music were lower than those obtained in the US radio market. Certainly, to be a country so associated with entrepreneurship and technological innovation, the United States still remains quite high compared to other economies when it comes to the popularity of radio. For example:
- 69% of Americans listen to the radio.
- 30% of Americans are above 55 years of age.
Given the high average age of consumers, the important segments for advertising are concentrated within this medium. And not only that, but because these people tend to adapt more slowly to new technologies compared to younger populations, it is observed that digital advertising does not yet abound in this medium, not to mention that neither Google nor Facebook have managed to enter in an optimal way. This could be seen as an opportunity to capitalize on the ads through this medium.
You can download the app here.
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