San Francisco - Swedish music streaming platform Spotify is reportedly planning an expansion into both virtual and live concert events, potentially enhancing its relationship with artists and adding a new revenue stream for the music streaming platform.
According to The Information, Spotify would sell tickets to events. The company has already experimented with live virtual concerts, though it's considering a move into in-person events as well.
In the medium term, the actual impact on the company's bottom line would be minimal. The Information reports that Spotify isn't looking to compete with existing juggernauts like LiveNation or Anschutz Entertainment Group.
However, in the long term, the move could help the company diversify its revenue, reports AppleInsider.
In addition to virtual events, Spotify has been making a major push into the podcasting industry. By the end of 2021, Spotify could overtake Apple as the dominant podcast player.
Additionally, the move could help smooth over relations between Spotify and artists, who have long complained that they don't make much money from the music streaming platform.
In the event space, however, Spotify would be able to leverage the vast amounts of consumer data it harvests via its music streaming platform, the report said.
It could use that data to help artists plan concerts in less populated areas that would normally be too small for headline performers, it added.
By selling tickets to its own hosted events, Spotify could also differentiate its service from its biggest rival, Apple Music.
Spotify's past dabbling in events kicked off as the pandemic shuttered concerts across the globe.
The music streamer partnered with a production company to hold prerecorded concerts, including events that featured The Black Keys and the Bleachers' Jack Antonoff.
Currently, Spotify is a major player in the music industry with 356 million active monthly users and 158 million paying subscribers.