‘Everything linear dies’: Spotify wants to kill radio as we know it
Spotify CEO Daniel Ek didn’t beat around the bush during his call with investors this week.
The tech titan made it clear that radio was its only competition in the man-made race to become the most powerful on-demand audio company in the world.
Ek and his chief bean counter were fielding questions from analysts after releasing first-quarter results on Wednesday when the Swedish billionaire reaffirmed intentions to outplay radio.
“Both short and long term, we are always thinking about Spotify’s role within the larger ecosystem,” said Ek during the investor call.
“While most of the focus is on competition between streaming services, we continue to be focused on the billions of users who are listening to linear radio.”
According to Music Ally, during a proceeding interview, he continuously returned to the belief that the big audio trend over the next 20 years is the move from “linear to on-demand”.
Commercial radio networks are well versed and share in that belief, with the big four in Australia doubling-down on their audio efforts in recent years, with some promising results.
The big difference is the business model, with radio chasing advertisers and the streaming giant focussed on acquiring paid subscriptions. As for the content war, both are playing a hard game.
At one point, reports Music Ally, Ek said his vision means “everything linear dies”.
But that’s not big news. Spotify’s former CEO, Barry McCarthy, has previously said “linear dies” and that “everything on-demand wins”. However, it reveals their strategy hasn’t changed much.
When pressed about whether Spotify has plans to raise its monthly subscription fees, Ek again made it clear the race to wipe out terrestrial radio remains the company’s top priority.
“Our primary strategy is growth rather than maximising revenue,” he said.
“That’s due to the fact that we see this amazing opportunity of moving from radio to on-demand audio… that’s what you’re seeing us go after.”