Spotify Launching Branded Apps Soon

Posted Apr 13, 2012

Music streaming service Spotify will soon start adding apps from companies like AT&T, McDonald’s, Intel, and Reebok in the next few months to make the platform more intriguing for advertisers. This would help them offset the massive licensing costs that they are dealing with. Earlier today we reported that Spotify was going to likely hit over $800 million in revenues this year, but will likely hit over $60 million in net loss.

Spotify launched in Europe four years ago and in the U.S. last summer. They have hit 10 million active free listeners that hear ads and 3 million users that pay a monthly fee for unlimited ad-free music and access to the Spotify mobile app. That cost is $9.99 per month in the U.S.

Last year Spotify announced apps from music publishers such as Rolling Stone, Pitchfork, and Billboard. Spotify CEO Daniel Ek will introduce the branded apps at the Ad Age Digital Conference in New York next week.

The first branded app will include AT&T’s Surround Sounds app, which will plot the songs to the location where they were written, recoreded, played, and/or performed. This allows people to find music by searching for apps. Reebok’s branded app will have workout playlists. Intel’s Sifter app will recommend songs, bands, and artists based on what Facebook friends are listening to.