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If Google Acquires Spotify

Posted April 6, 2017

The news that Spotify has switched to Google’s cloud system has created a buzz. Word is that Google is planning on buying Spotify. That’s huge news which, in April 1, created a sensation when Digital Music News wrote breaking news that the acquisition actually pulled through. Though, of course, that was actually an April Fools joke. But that doesn’t mean that the possibility of Google actually buying Spotify is zero. This is still a hanging question which has many people in the industry and the stock market thinking: what would actually happen if Google acquires Spotify? Here’s our answer.


Who would benefit?

Google has long been attempting to broach into the music streaming landscape for a long time. Unfortunately, they have been quite unsuccessful. Google Play Music, much like Google Plus, has failed to launch itself more than a few meters above the ground. And of course, Google will have to pay at least near a couple of billion dollars to acquire Spotify, even if the company is not currently raking in a lot of money. So, if Google does plays things right, they both stand to gain something, however it’s also likely that both will lose.


Further division between Google brands

YouTube, Gmail, Android, Google Play Music, Google Ads, Chrome, etc. how many side brands does Google have and do they all really benefit from brand recall? It’s dizzying to think about the fragmentation of these separate entities and how Spotify will fit in. Google is in danger of further dividing their brand projects and identity.


The new media platform powerhouse

Spotify has around 80 M subscribers. That is a huge number. The only other big media app that has more subscribers is YouTube. And Spotify has a lot of things going for it that Google Play Music has failed to mimic. They use a data strategy that has put them on top of music streaming. So even if they aren’t raking in big bucks, Google can still win by having Spotify under it’s roster. Now, if Google somehow manages to package it’s video and audio media servings into one sexy package, millennials will eat it up.

The music industry has not yet stopped evolving through the presence of the new streaming technology that is a little more complicated than it appears. But this also mean that huge industry potential is still there.  And Spotify is what is leading the music streaming phenomenon so anyone who gains a good handle on Spotify could potentially win big and change the industry for better. Or, if handled incorrectly, for worse.

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