Earlier this year, in a news story of Financial Times, Spotify talked about their plan to keep on succeeding worldwide: by replicating in other emerging markets what they did in Latin America.
They seem to be collecting the results from this endeavor: Spotify’s financial results report for 2019’s first quarter, launched on Monday and to which several news outlets had access to, revealed that the music-streaming service has an audience of 217 million monthly active users worldwide. From these 217 million, 100 million are paid subscribers. It’s double the volume of paid subscribers that its main competitor achieved this year.
To reach this impressive point, Spotify had learned a lot from the Latin American markets, as reported by Financial Times news story. The first Latin American country that became a good surprise for Spotify was Mexico: even without the resources for this, the brand became the favorite among the music-streamings. One year later, they entered into the Brazilian market, still with no big resources, local office, and no further efforts, but marketing campaigns.
The results were even more remarkable: Brazil became a market as important as Mexico.
The success was so huge in these countries that the company invested in LatAm before entering the Canadian market. Besides that, Will Page, Spotify’s director of economics, told the Financial Times that the company’s expectations are that Mexico and Brazil will overcome UK and Germany in number of subscribers.
With a connected and young audience, Latin American countries were the emerging markets with early adopters that Spotify needed to keep growing around the world.
The results in Latin America were so expressive that the founder, Daniel Ek, made the decision to replicate the strategy globally for emerging markets, according to the Financial Times news story. Not by coincidence, the last movement of the company was to invest in India.
One thing we know for sure: the 100 million paid subscribers milestone has a lot to do with a successful strategy of enjoying the full potential of emerging markets.