Despite fierce competition from tech giants like Apple and Amazon, Spotify has remained one of the world's most popular music streaming platforms.
In its early days, personalization and an easier way of helping users discover new music set it apart from others. Now, though, its competitors are doing the same thing.
So, how does Spotify stay at the top? Is it an innovative mindset, its loyal fans, or something in the pure Swedish water? Let's take a look at some of the most significant factors.
Spotify's Best Recent Innovations
Once competitors arise and offer similar services to you, setting yourself apart is essential. And as Spotify's recent innovations show, the company continues to do that pretty well.
Talking to the People
You’ve probably seen Spotify’s billboard ads in real life. And if not, they’ve undoubtedly shown up in one or more of your social media feeds. If you wanted to see an example of how to use data to be witty, appealing, and relatable in equal measure, this would be where you go.
Beyond speaking to users on a personal level, the platform has also helped address one of the most common (and annoying) music-listening problems: letting a great song go because you don’t know the name.
In October 2020, a Spotify employee announced that you could search for Spotify songs by lyrics on iOS and Android. Which, as anyone growing up with technology in the mid-2000s will attest to, is a godsend.
And you can also search by humming!
In April 2021, Spotify also revealed a new innovation to fine-tune car journeys in the US. Bluntly titled Car Thing, users can soundtrack their trips easier with voice control, dial browsing, and preset buttons.
Personalization Amplified
While Spotify's competitors have introduced personalization, the original is still the best. One example of continuing to go above and beyond is the Canvas marketplace. Through this feature, launched in November 2020, fans can design artwork for their favorite artists.
Famous artists to utilize Canvas include Gorillaz, Billie Eilish, and Glass Animals.
Speaking of connecting celebrities and fans, another example of hyper-personalization is Listen Alike. Also announced in 2020, this feature enables users to find out which celebrities share similar music and podcast tastes.
Why Else Has Spotify Remained Relevant?
Alongside its recent innovations, Spotify has stayed at the top of the music streaming game for numerous other reasons.
The first is simple: the company has not rested on its laurels. Beyond constantly finding new ways to disrupt music streaming, Spotify also has a clear customer retention strategy.
If you're a Spotify user, you'll know all about this. The end-of-year Wrapped music reports, constant suggestions for new content, and encouraging you to share what you're listening to are three examples.
Spotify also works to continuously improve its existing features, like revamping its podcast charts to help you discover new favorites.
Having multiple entry points has also worked in Spotify's favor. Especially when it comes to having a free version.
Spotify's free membership is a natural lure for those who want to listen to music on the go. Yes, the ads are sometimes annoying, but in comparison you need to pay for any access to Apple Music. As for Amazon Music, your options with the free version are limited.
Strong branding has also played a role. Its aesthetic is on-point, from the green and black logo to the fonts and colors it uses in its graphics. When you see a Spotify ad, you instantly know who it’s from.
A nurturing environment is also a key factor. Spotify is headquartered in Stockholm, a city with a thriving startup and tech ecosystem. Being in the capital of Sweden, a company famed for its work-life balance, also helps. And even for those based elsewhere, these two values have spread across its offices.
Both have helped Spotify and its employees to continue disrupting the music streaming game. The company has kept its startup ethos, despite growing into a multibillion-dollar company.
The flexibility the company offers workers was highlighted by Spotify's remote working policy, introduced in 2021. This allows employees to produce their best work wherever suits them.
Spotify Is Poised for Longevity
Spotify helped to revolutionize how we listen to music. And while other streaming services have followed, the company has managed to remain relevant for multiple reasons.
A mixture of maintaining its startup culture and encouraging innovation has played critical roles in Spotify's continued success. So has personalization; other companies are doing it too, but not as well.
Strong branding and focusing on customer retention have also been essential to Spotify's success. Going forward, all of these will continue to help keep the pendulum swung in the company's favor.