Quick Take: Spotify Expands Premium Duo into Latin America
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Spotify has announced that its Premium Duo plan will be expanding to another 17 countries, 14 of which are in Latin America. The plan, which is effectively a mini version of its popular family offering, has been created with the express intention of servicing couples who reside at the same home address.
Social trends play into this; according to this report from 2016 on cohabiting trends in Latin America, some countries in the region have seen cohabitation levels more than quadruple since 1970. It is also a shrewd consumer cost-saving manoeuvre from a company which is likely to deal with its first recession in the coming years, testing for the first time how consumers view the value of a paid music streaming service when compelled to tighten discretionary spending.
But why the emphasis on the region, and why now? A few statistics to consider:
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Find out more…- Latin America continued its upward trajectory with 17.7% growth in revenue, up on 2016’s increase of 8.5%. Overall, the region showed the highest level of growth globally, driven largely by a 48.9% increase in streaming revenues.
- Growth was seen across the entire region, but most notably in Peru (21.7%), Chile (14.3%), Colombia (10.5%) and Mexico (7.9%). The region’s largest market, Brazil, has returned to impressive growth (17.9%).
With growth slowing in developed markets, Spotify is still looking for its next exponential growth story to appease the demands of being a publicly-listed tech company on the NYSE. Such trends in Latin America are therefore setting a blueprint for emerging markets more broadly, meaning that the region, which has been opportune for streaming due to the fact the download market never really got going, remains a test case for further global expansion plans. What happens in Latin America will therefore determine how Spotify and the wider music streaming ecosystem as a whole strategise for the next one billion internet users.
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