The world’s largest music streaming service, Spotify launches today in South Africa in order to expand its footprint in Africa. The service has already gone live a day before announcing its launch in the Country.
It launched by offering a free 30-day trial to its Premium service, which costs R59.99/month after the trial period ends. According to TechCentral, The South African pricing is a significant discount to what Spotify users pay in the US. In the US, the Premium tier costs US$9.99/month (R117.15), or $14.99 (R177.39) for a family plan of up to six users.
This comes six months after a speculation about the launch of Spotify emerged when the company placed a job advertisement for a senior editor and music programmer for South Africa.
Currently, Spotify is the world’s largest global music streaming subscription service with a community of almost 160m users, including 71m paying premium subscribers. Spotify is also preparing to list on the New York Stock Exchange in order to allow investors and employees sell shares without the company raising new capital or hiring Wall Street banks to underwrite the issue.
The platform is set to compete with the wide choice of streaming services available in South Africa which include Apple Music, Deezer, Google Play Music, Simfy Africa and Joox
According to Reuters, an increase in connectivity across South Africa, helped by higher investment in infrastructure, as well as a growing uptake in credit cards and bank accounts has drawn global video and music streaming providers.
What does South Africa stand to gain from this launch
Apart from being a big deal that the world’s largest music streaming service, Spotify is set to launch in Africa. There will also be a boost in the revenue of South African music industry. This revenue would be generated through the signing of new licensing agreements with record labels and music publishers.
With this launch, Spotify can also work with record labels and music producers from other African countries through their South African office before expanding to other parts of Africa.