Spotify's Russian Launch Targets New Market With Real Potential

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.Spotify is launching its streaming service in Russia and 12 other countries in Europe, reaching potentially 250 million new users.

The skyscrapers of the Moscow International Business Center in Russia photographed on Oct. 28, 2014.

In addition to Russia, the 16th-largest streaming market, Spotify will push into Albania, Belarus, Bosnia and Herzegovina, Croatia, Kazakhstan, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, Slovenia and Ukraine. The next few years for Spotify are going to be dominated by an effort to drive subscriber growth in emerging markets, says, managing director at MIDiA Consulting. “Although this will mean a continued erosion of ARPU [average return per user] it knows that as Western markets mature it needs emerging markets to drive the subscriber growth its investors expect. Russia fits this model.”

“Launching in these 13 markets is an important moment in Spotify’s journey, especially as we welcome fans and artists in growing music markets like Russia, where streaming is being widely adopted and where we see a significant opportunity for Spotify,”With the launch on Tuesday, Spotify says it is introducing 200 new playlists featuring artists from across the 13-country region to fans around the world.

 

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