20.03.2019
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Spotify enters Russian music market

Competitors are tense but feel confident

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Spotify is an online streaming audio service that allows you to listen to music tracks legally and for free. Now the service successfully operates in 70 countries. Daniel Ek, CEO of the service, said that the company is preparing to start work in Russia in the summer of 2019.

The development team believes that there is a strong potential in the streaming service to conquer the market of music services.

A subscription to a service for USA residents costs $ 10. The cost in Russia is currently unknown.
A subscription to a service for USA residents costs $ 10. The cost in Russia is currently unknown.

“We now have more than 159 million active users in 65 countries, 71 million premium subscribers, more than 3,500 employees worldwide and more than 35 million tracks. But we’re just starting… Spotify has a lot more prospects than you thought.”

The service functions as a cloud base and allows the user to select a composition from an extensive media library. Currently, Spotify provides access to over 30 million tracks. Users can search by artist, album, genre. All users have access to many major independent labels. You can also create your own playlists or listen to the radio. You can use the resource with advertising and some restrictions for free. If you pay a subscription, all restrictions are automatically removed.

In Russia, users have long been waiting for Spotify. The service planned to start work here in 2014 and even registered the legal brand LLC Spotify in the Unified State Register of Legal Entities. However, the introduction of the Register was not a guarantee of launch. According to some sources, there were several obstacles to entering the market: the economic crisis, changes at the legislative level, requirements for the storage of users’ personal data, conflicts and disagreements with certain organizations and individuals.

Sberbank CIB analysts have already warned that Spotify will have a significant impact on the Russian music market. But his direct competitors (Yandex.Music and VKontakte (together with BOOM)) noted that they are not afraid of the appearance of a new player on the market and see their competitive advantages over Spotify.

Not only Yandex.Music and VKontakte become competitors. Do not forget about Apple Music and Google Music.
Not only Yandex.Music and VKontakte become competitors. Do not forget about Apple Music and Google Music.

“The growth of the market of legal audio services will be 20–30% per year, Spotify will make a significant contribution to this growth if it starts working in Russia,” said Alexandra Nosach, head of the licensing department for music and video content at Black Star Inc.

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