Spotify To Release Tailored Apps From Companies Like AT&T, McDonald’s And Others

The digital music service Spotify will add apps to its service from the likes of well known companies like Reebok, McDonald’s, AT&T, Intel and others. The company has already implemented this strategy, last year, releasing apps with music companies like Rolling Stone and Billboard. Spotify has found a way to successfully mitigate the famously high liscencing costs by taking on significant sponsorship. According to Chief Marketing Solutions Officer Jeff Levick, to date the company has paid $300 million to record labels, and is still able to sustain its growing business.

Spotify is new to the U.S. app marketplace, making its debut in the summer of 2011. Spotify originally got going in Europe four years ago. Currently, it has picked up 10 million free listeners, those who have to listen to an occasional advertisement. The company also has a subscription service with a fee of $9.99 that allows uninterrupted access to its 16 million song library.

Seen above is the company’s first release with AT&T, titled Surround Sounds. The app charts songs on a location-based map according to where the songs were written, recorded or performed. This allows users to explore a library of music in an unconventional way by surveying an interactive map for songs. Reebok’s app focuses on playlists you can review for working out. Intel’s app will look at your Facebook friends’ preferences and compile a list.

According to AllThingsD, the company reported $100 million in venture funding last year. As Business Insider reports, it also has a goal to raise more at a $3.5 billion valuation. However, the company posted losses of around $96 million in two years, and only time will tell if the company can continue to spend it’s way towards progress.

CEO and Founder Daniel Ek will be speaking at the Ad Age’s Digital Conference next week in New York.


  1. Spotify Gets Radical Update For Android 4.0 | WholeLottaWonder! - April 19, 2012

    […] a month, which you will need to to access the service from your smartphone. Spotify does have a free service online, but you will need to pay the premium fee for full support of Android 4.0 Ice Cream […]

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