Spotify Update for Apple Inc. iPhone Threatens Beats Music, Pandora, and Comcast Market Share


SpotifySpotify, is a Swedish streaming music service that wants to be the single source, for all entertainment. Currently it is the fastest growing music app on the Apple Inc. iPhone in the United States. However,  Apple will be releasing an updated version of Beats Music, that may have the most impact on Spotify’s growth. Pandora is also going to be impacted by the updates for both Spotify and Beats Music. Pandora has more active weekly users out of the top music apps for Android and iPhone. Pandora, however, is not growing. As a result of Spotify’s fast and steady growth, little if any market share with be left for these other well known music streaming applications.

According to some of the latest reports, Apple Inc. iPhone users are having issues with the new Spotify. People have been reporting that the iPhone iOS 8.3 and the Spotify 3.0.0 are not working together. Therefore, all may not be lost for Beats Music, Pandora and Comcast. If issues with the new Spotify update continues, it may be the Swedish streaming music service’s market share that will be at risk.

Users have complained that they are either unable to open the Spotify app or the app freezes once opened. It has been suggested that users delete the app and then reinstall it again to fix the issue. This seems to work for iPhone users.

The Swedish company is integrating podcast streaming and video to its mobile app, as well as new fitness feature called Spotify Running. These new features are bundled into the newer version of the app, giving premium users more for their £10 ($9.99) a month.

Most users are able to choose any playlist, strap on their phone and hit the ground running on their own. The music streaming company believes in proper motivation through music. Spotify offers recommendations, based on the user’s listening history, multi-genre playlists, and original running compositions by some of the world’s most cutting edge composers and DJ’s, to keep the runner going. The company and Nike have teamed up to allow access to the app through the Nike+ app. RunKeeper will also benefit from Spotify in Running Mode, later in the year. This way, people can just use it without the app installed.

The most notable new feature for the new update that users will see when they launch the mobile app is a new “Now” start page. There are playlists and albums that are recommended for the user. Over time, the app learns what music the user prefers, playlists the user favors, and will provide playlists created by the company’s team and the user’s music collection. It has evolved from its current home screen actions, changing and shifting depending on the time of day it is used.

There is even more to the new upgrades then just how it handles music. The music streaming company has made an executive decision to not compete with Netflix, Hulu, and Amazon Prime Instant with its own video streaming. The company prefers to be set apart and is preparing to make news clips and short clips available from Adult Swim, Comedy Central, Conde Nast, BBC, Vice News, ABC and so on. The list is extensive.

Spotify Originals provides original music, podcast, and video content directly to users. It might not be totally new music, but it includes radio shows that have been put together by Spotify. The radio shows include Tyler the Creator and Icona Pop, and also video series, such as, Amy Poehler’s Smart Girls’, “Dance Move of the Day.”

At this time, the upgrades are only available for the Apple Inc. iPhone. There is an Android update coming, but was not mentioned in the update’s press release, and live announcement in New York. The new Spotify Running and Now menu updates roll out today, May 21, however, there has not been any news on when the Video and Originals will be made available. Also there has not been any information released concerning if the video features will be restricted to premium subscribers.

The popular Swedish music streaming app has 15 million paid subscribers with 60 million listeners. It also provides songs on demand for free, as well as the option of and ad-free a paid subscription for $9.99. CEO Daniel Ek told a crowd, Wednesday, May 20, in New York City, that the music app is now creating playlists tailored to the user’s age, location and favorites. This would include the tailoring of music for specialized activities, with features such as, Spotify Running which will generate a fitness playlist, when its special sensors are activated on the mobile device, to detect running. This summer Nike+ and RunKeeper, will all be able to integrate with the music app. The Now start page also allows users to choose playlists, to play for certain activities. This menu is similar to the menu for the Google Play Music App.

The update will have a video addition that will more than likely be well received by users who want to move from cable bundles to the app’s a la carte subscription. Shaping services toward the age and location of the user will assist in the app’s ability to offer an alternative to the frustration that drives customers to leave cable providers and turn to online video sites.

Spotify is growing and expanding in leaps and bounds. These expansions are a threat to Apple’s Beats Music, and Pandora market share, especially with the new playlist options and the Spotify Running Mode additions. The new streaming video, with several different news and network options threatens Comcast’s overall reach into the market, particularly when it comes to add on purchases. Instead of purchasing bundles of channels that the user does not watch for a much larger amount of money, users can choose prefered networks for $9.99 a month.

By Jeanette Smith

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