Podcasting and music streaming company Spotify Technology SA SPOT is looking to enter live events as a new revenue stream and a way to monetize its customer data.
What Happened: Spotify is exploring expansion into live events and ticketing, according to The Information.
Spotify has already experimented with live virtual events, according to Apple Insider.
Sources told The Information that Spotify isn’t looking to compete with existing live event business companies such as Live Nation Entertainment, Inc. LYV and Anschutz Entertainment Group.
Related Link: Is Live Nation The Ultimate Reopening And NFT Play?
Why It’s Important: The move by Spotify into live events may not provide an immediate boost to revenue but could be important for several reasons.
Having revenue from live events diversifies the company’s revenue sources, providing a new vertical.
The Information also points to a move into live events helping strengthen relations with artists who have often complained about the amount of money paid by streaming services.
Spotify could also leverage the new vertical of live and virtual events to continue adding some of the top podcast names to its platform by offering them the chance to do events.
Spotify could pass Apple Inc AAPL as the top podcast platform in 2021. The company has 356 million active monthly users and 158 million paying subscribers.
Consumer data collected by Spotify could be monetized into helping plan concerts in areas where the artists have large followings or see heavy play on Spotify.
Price Action: Shares of SPOT are up 0.82%% to $275.59 Wednesday.
LYV shares are down 0.95%% to $87.59 Wednesday.
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