people listen to music in a car, airplane, etc) when forms partnerships. Lastly, it is also worth to mention that Spotify smartly focused on use cases (e.g. The more platforms customer will use to listen to Spotify, the less likely (s)he will leave. only premium subscribers can use Spotify in Uber) and they finally convert. Existing users who haven’t yet turned into paying subscribers see growing value of having premium account (e.g. New users acquisition which in future will turn to paying subscribers. To sum up with this section and conclude why Spotify form partnerships, I have three assumptions to answer:
Alliances are formed not only to be beneficial for partners, but also for their customers. Goals, in broad terms, usually fall into two categories: product expansion(in areas outside of core competencies) or distribution.
Other competitors are slowly catching up.Ĭompanies form partnerships in order to accelerate process of reaching their goals. Apple Music hasn’t yet formed many partnerships and grow thanks to millions of existing Apple users. Spotify is a leader in terms of partnerships and presents in almost every platform where users can listen to music.
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