Sirius XM Holdings Inc. (NASDAQ:SIRI), Spotify, Beyoncé And The Streaming Music Industry
Sirius XM Holdings Inc. (NASDAQ:SIRI) gets one more competitive news as Online music-streaming service Spotify last week announced the launch of a free music service for smart phones and tablets. Earlier listeners had to pay for on-demand connection on their mobile devices. However, the listeners will require bearing with commercial interruptions, in case they choose to hear the music for free.
The Spotify Strategy
While Pandora Media Inc. (NYSE:P) is yet to report profits with its free music offerings that heavily rely on advertisement revenues, Spotify CEO Daniel Ek is confident of increase in subscribers as more active listeners could not bear for long with commercial interruptions. Ek said, “The more music you play, the more likely you will pay,” during a press conference. Ek also acknowledged smartphones and tablets as the choice devices to listen to music.
Spotify with recent entry into 20 more markets now serves to 55 markets across the world. Spotify is steadily penetrating into these fiercely competitive space already baffled by Sirius XM Holdings Inc. (NASDAQ:SIRI)’s satellite radio services, Pandora Media Inc. (NYSE:P)’s online streaming services and Apple Inc. (NASDAQ:AAPL)’s iTunes Radio that serves to its homely iOS customers among few less known players in the field.
An Urge to Lead
Beyoncé surprised everybody with an unconventional launch of her latest album which is believed to have sold 365,000 copies in the United States on its first day, reported The New York Times. Beyoncé put her album for sale on Apple Inc. (NASDAQ:AAPL)’s iTunes with just a “Surprise!” message on her Instagram.
Dion Summers, who programs urban music at Sirius XM Holdings Inc. (NASDAQ:SIRI)’s radio said that he bought the album soon after launch and started playing the songs immediately, rather than waiting for Beyoncé’s label to deliver the music. This proves Sirius XM Radio’s urge for delivering unparalleled, curated listening experience to its subscribers.