Spotify, Coca-Cola Team Up for App, Facebook Integration, More


Below is a news summary by Cody Phelps, an Entertainment Management student at Missouri State University.

(from Billboard Magazine, April 18, 2012) Coca-Cola and Spotify have recently announced they will be teaming up for a smart phone, tablet app and more. Coca-Cola has the largest following of any brand on Facebook, which will help cement Spotify’s place in the United States.

Spotify entered the US market last summer with a partnership with Facebook. Offering an extensive library of music, users with a free account can access all of the music on a computer, or can pay a monthly subscription fee to access it on mobile devices. Spotify was started in the United Kingdom, and has been successful there. There are approximately 3 million users in the United States and nearly 600,000 paid subscribers, which is expected to be reached by the end of the month. They hope to add more features to Spotify in the United States, including a click to buy option. Publishing rights in the United States are harder to navigate than other countries, so it will take longer for Spotify to look like the United Kingdom version. They hope this deal with Coca-Cola will allow them to reach more areas in the world.

With this agreement, Spotify will become the exclusive music provider for Coca-Cola Music. This is not a two-way deal though, as Spotify has already started working Coca-Cola’s largest rival, PepsiCo. The app is expected to debut as a large part of Coca-Cola’s 2012 Olympics marketing. It will have the the official anthem of Coke’s Olympic campaign. It is also expected to enhance the efforts of Coca-Cola Music, which was started to create music programs in the odd years between the Olympics and FIFA World Cups, which Coca-Cola an official sponsor of both. Both companies hope for this to be a long term relationship, helping each other grow in the United States and the rest of the world.