Labels may be slowing Spotify Superfan launch, hints CEO Ek
Record labels may be slowing the Spotify superfan launch, CEO Daniel Ek hinted during an investor call Tuesday announcing the streamer’s mixed Q1 2025 Report.
During the call EK quoted Spotify co-founder Martin Lorentzon as saying that “the value of a business is the sum of all problems solved.”
Serving superfans is the latest problem that Spotify is working to solve for fans who want more access to artists and record labels and their artists hoping to jumpstart sluggish revenue. After today’s mixed earnings and revenue report, it’s also clear that Spotify could use the additonal income that a higher priced superfan offering could bring.
Last year, UMG CEO Lucian Grainge promised to “grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products.” On Tuesday’s call, Ek agreed, calling superfans a “huge opportunity” for the labels.
Spotify superfan launch
When asked by analyst Michael Morris to describe the promised Spotify superfan offering and when it would launch, CEO Ek replied: “we need alignment and support from our industry partners to offer these kinds of new experiences to our users.”
Leading Spotify’s superfan partners are Lucian Grainge and the major labels who must agree to almost anything that Spotify might charge extra for that relates to their artists.
With revenue expectations so high, a deal is not coming easily.
Another partner that Spotify approached is Live Nation in hopes that the concert giant would offer the streamer’s superfans early access to tickets. But Live Nation CEO Michael Rapino seems less than interested.
“Spotify and Apple and Amazon, they’ve approached us. We’ve talked to them all, about ideas on if they wanted inventory,” said Rapino recently. “There’s a cost to that and we would entertain and look at that option if it made sense for us in comparison to other options we have for that presale which is a very valuable asset.”
Spotify Stock Today
After falling by as much as 8,5% after today earning report, Spotify stock was down 5% to $568,07 mid-day on Tuesday.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of the Skyline Artists Agency
