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Monday, November 5, 2012

Trade Review: Week Ten (1/1)



Spotify has partnered with Samsung in an effort to encourage and incentivize new subscribers. Samsung's newest television products will now have Spotify streaming built into the television as an added perk. However, the consumer can only access the Spotify streaming by being a subscriber. Simply being a free user will not allow you to listen to the content, “the deal will give Samsung a new way to promote its televisions; Spotify, meanwhile, hopes the arrangement offers a new incentive for consumers to pay for its subscription service rather than use its advertising-backed, free-of-charge offering” (Grundberg). By partnering with a brand, especially of such high technological caliber as Samsung, will hopefully boost subscription revenue and increase Spotify’s global image. A popular brand in the international market as well, Samsung users that are not already familiar with Spotify will be able to discover the service in a new way (if Spotify is registered in that country).
This is not Spotify’s only recent partnership, where Spotify just linked up with video streaming giant Netflix in an effort to increase subscriptions for both companies alike. Spotify will allow those individuals who are already subscribers to have free access to Netflix until the years end. In doing so, Spotify hopes that the partnership will raise awareness to the power of streaming content and also incentivize consumers who were on the fence about paying for either service. More importantly, it is Netflix trying to raise awareness in international markets that Spotify is already prominent in like like Norway, Sweden and Finland Hopefully, with this partnership Netflix and Spotify will bring in new, paying users.


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