Spotify South Africa Launches 'Lite' App For Emerging Markets
Spotify Technology SA has released a new version of its music streaming app for users in emerging markets.
The company says that this is an effort to grow outside of its strongholds in Europe and the US.
The Spotify Lite app, which operates on Android phones, will cater to users who are limited by slow networks and data plans, especially in regions like Latin America, the Middle East, Africa and Asia, the company revealed in a statement. The app has been released in 36 markets, and an ad-supported service is available free of cost while a premium version costs the same as it does on its regular music-streaming platform.
The company is relying on Spotify Lite for a much-needed boost in markets with great potential.
The streaming service also has to reassure investors about its growth prospects as it continues to lose money. The shares are currently down 26% from their high last year.
Spotify's biggest challenge is the royalties it has to pay for music rights, which use up more than 60% of revenue and are a significant source of its losses
The company is now seeking other avenues for growth, such as podcasting.
Spotify has pleaded with its investors to trust and have faith that the market for audio streaming is still in its very early stages.
Credit: This article originated from www.fin24.com