Spotify tunes into local music market

GLOBAL music streaming provider Spotify launched its services in South Africa yesterday, marking its entry into Africa.

The Swedish company, launched in 2008 and live in more than 60 countries, is the biggest music streaming firm in the world, counting services from Apple, Amazon and Alphabet’s Google Play as its main rivals.

The launch comes as Spotify readies for a listing of its shares on the New York Stock Exchange, which will allow investors and employees to sell shares without the company raising new capital or hiring Wall Street banks to underwrite the issue. “We believe South Africa is a wonderful country to start in,” said Spotify managing director in Middle East and Africa Claudius Boller.

“We looked at the technology landscape, we looked at the maturity and actually South Africa is seen globally as a very important music market.”

Spotify also aspires to branch into the rest of Africa, Boller said.

An increase in connectivity across South Africa, helped by higher investment in infrastructure, as well as a growing uptake in credit cards and bank accounts has drawn global video and music streaming providers.

Its music streaming market is dominated by players such as Apple Music, Google Play, France’s Deezer and Simfy Africa, with only a few local operators such as MTN and Cell C with MTN Music+ and Black and entertainment from Naspers.

In its filing to list its shares, Spotify said its operating loss widened to €378 million in 2017 from €349m. – Reuters