Spotify Reaches Its One Year Anniversary Into The Asian Market.
After more than a year after it’s very first entrance into Asia, Spotify has officially opened up its Asia hub.
Having launched in Singapore for the markets of Hong Kong and Malaysia during April 2013, the music-streaming company has since then increase up to 20 employees, with most of them based around Singapore as the regional hub.
It’s presence now fills over five markets across Asia and further expansion towards several other markets is on the cards. While declining to reveal growth figures, the managing director of Asia, Sunita Kaur, stated that all the markets within Asia were in sight for the company’s expansion.
At the moment, it has over more than 20 million songs on its database, and over 40 million users, of which 10 million are paid subscribers.
Kaur stated a mobile-first strategy had been their main source in growing the user base substantially within Singapore, Malaysia and Hong Kong. Originally, users would be able to access Spotify from their desktop for free, but had to pay access for it on their mobile devices.
Although, that has since changed to allow users free mobile access, this uptake has been rapid.
“Singapore users top Malaysia, Hong Kong and Taiwan in terms of daily mobile music streaming, and music streaming growth has tripled since Spotify entered the market,” Kaur said.
The approach has been to go local for Asia, with the music-streaming service actively reaching out towards local artist/labels in each market, which has helped the company pus its users uptake extensively. This is particularly so for markets such as the Hong Kong, Taiwan, and the Philippines.
As for the US, there have been issues coming up with artist taking up Spotify, for instance, Pink Floyd and Metallica were previously absent, but have now jumped on board, Kaur stated that there were no such issues when it came to the artist in Asia so far.
As an advertising platform, Spotify has worked with many brands to help them create what’s been dubbed as “interactive” audio ads. It’s been holding workshops for creative agencies and help them to create these audios ads.
Brands that have inked down an deal with Spotify include Nike and adidas, among plenty of others.
Spotify can contribute their marketing mostly though the use of word-of-mouth stated Kaur. “Our users are our marketers.”
Besides that, it has been teaming up with all sorts of telcos all over the regions. For instance, its has made a deal with Globe in the Philippines and Maxis in Malaysia, as well as hardware partnerships with the likes of sound equipment brands Bose, Samsung and others. It has also been sponsoring events as a partner, such as the recently concluded Music run in Malaysia.
While event sponsorship continue to make up a larger part of its marketing strategy, it’s also looking to work much more closely with media and creative agencies to market its own brand. For instance, at the moment its planning to run a creative hackathon to come up with the very best audio spots for Spotify within the region.