Boosting ad sales is vital if Spotify is going to deliver more profits, and reassure Wall Street that its business model has long-term potential. — Reuters
Spotify Technology SA built the world’s largest audio-streaming service by convincing millions of people around the world to pay for music. Founder and Chief Executive Officer Daniel Ek now sees an even bigger opportunity in advertising.
The US radio industry generated about US$18bil (RM77.75bil) in advertising sales in a recent year, and a large share of those dollars will shift online to services like Spotify, Ek said in an interview with Bloomberg Television. "It’s obvious today that the music business is focused on paid subscriptions," Ek told host Emily Chang. But radio advertising is "larger than the entire streaming industry is for music.”
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