You’re a PM at Spotify. The company is considering adding a feature that allows artists to go live on the app. Should they invest in it?

Allowing artists to go live on Spotify app?

Spotify is a digital music, podcast and video streaming app. The content is stored in their database and users can select from the list and stream the content on the go.

Market research -

Today a majority of the live shows are covered offline in specific venues where the interested folks need to be physically present to witness their favorite artists perform. However, this is limited by the fact that such shows are smaller in number and remain limited to fe big cities in most of the cases.

Currently, there are no products which stream a live show. There are different apps who show the recorded version of a live show, but not the live show. So, this can be a differentiator for Spotify.

If we look into the user base of Spotify, a majority of the users are from the current generation who have their favorite singers/ bands and love to listen to their compositions. Getting an option to see their favorite artists perform live from the comfort of their home, would be a huge game changer for these users, even if they have to pay a booking fee for such events.

In addition to users, from the artists perspective as well, it gives them an option to develop stronger bonds with their fans and at the same time advertise their upcoming tours and events, which will automatically increase the demand for such events in Spotify app from its users.

Pros/ Cons -

Pros -

• Increase in user base (attrition from competitors)
• Artists getting in collaboration with Spotify will make it a big brand
• Increase in time spent on the app per user
• Increase in usage of other features of the app through cross sell
• Additional revenue stream apart from premium and ads

• Additional expenses to maintain the collaboration with artists
• Tech infrastrucutre/ App performance issues owing to huge traffic on the app during a live event streaming

• % bookings made
• % audience joined the event
• % audience left when the event got over
• Time duration by when 50% of the audience had left
• App crash events
• Live streaming performance

• # new users
• Avg time spent on each of the app features
• % users book a live event
• % users attend the live event
• % users stay till the end of the event
• Engagement rate (likes, comments, etc.)
• % users who come back for a successive live event
• % increase in paid users
• ARPU
• NPS