The Challenges Before Spotify

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There is no perfect invention on earth. The latest invention is an improvement on what is already in existence. When you invest in Spotify/Spotify-plays, you are no doubt going to achieve the best results in streaming of music; but there are areas of concern that you must take note of. 

Five Things Spotify Needs to Fix in 2019 - Rolling Stone

So what are the weak areas that need to be strengthened by this company in other to improve on their performances? We shall be considering five of this area that needs urgent attention in other for artists to have the best results that mattered which will lift their popularity to the next level. 

Licensing Fees 

The issue of licensing fees leads to high royalty costs for Spotify. This is one of the major causes of loss of revenue for this company and the reason why they have not been able to make profits over the years gone by. The operating costs aside; this company must pay in other to be allowed to feature songs on its platform. According to Starista, in 2019 alone, a whopping 74.54% of Spotify’s revenues went to royalty payments.

Need For Internet Connection

It is not technically possible to achieve offline streaming of music with this company. You have to be a premium user to be able to first download the content from the library before it can be streamed offline. The content must first be streamed from somewhere and this makes it impossible for those that are outside the Wi-Fi range. Only about 54% of the world population has access to the internet in 2019. The implication is that 4.13 billion people out of a possible 7.67 billion have internet access (Statista).

  1. Trade Mark Appeal

 If a brand is to achieve the results that mattered in the streaming of musical stuff; then it must come to the party with something different from what is in existence. The app used by this company is not different from other musical apps that have been in existence before it. Therefore, Spotify is finding it difficult to compete with other brands that are more established before it.

There should be a brand identity for the best results that mattered to be achieved by Spotify. What they have that is different from the existing order is in the premium features and the reputation they are getting through endorsement by stars in the music industry but it will not be enough. Though this company has spent nearly $271.4 million in investment in the Podcast industry; more needs to be done. 

Payment Offers

Another area that needs to be strengthened by Spotify is the royalty paid to the artists. The competitors pay higher royalties to the artists that are on their label and this is the reason for low patronage for Spotify. If this company wants to break even, then the issue of pay for the artists should be upgraded.

Listeners Pay More

The last factor that will not make people like the idea of investing in buy Spotify plays is the attitude of the company to the listeners. The attempt to push paid subscriptions to its listeners is wrong. 


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