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Spotify to Tap New Asia Markets to Compete With Pandora Globally

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Spotify to Tap New Asia Markets to Compete With Pandora Globally
Daft Punk have set a record on Spotify. The music service says the French electronic duo's song, "Get Lucky," had one of the the biggest streaming days for a single track in 2013, in the United States and the United Kingdom. Photographer: Dan Steinberg/AP Photo

July 16 (Bloomberg) -- Spotify Ltd. is trying to break into Asian markets as it races against Pandora Media Inc. to expand globally.

The London-based online music provider is applying for licensing permits in Asian countries, the company’s regional director, Sunita Kaur, said in a telephone interview from Singapore today. She declined to identify which countries.

Spotify, which began operating in Hong Kong, Singapore and Malaysia in April, has expanded faster globally than Pandora. The company has a presence in Hong Kong that it hopes to use as a stepping stone to China, a nation with more Internet users than any country’s population except India.

“The number one priority honestly is the market developments, the new market launches,” said Kaur, who joined Spotify in June. “The market roll out is led by our licensing, so we tend to launch in markets where we see we have a good enough library to go into.”

Spotify is available in 28 countries and regions, including the U.S., U.K., and Australia. It has more than 6 million paying subscribers and 24 million active users, according to its website.

The music provider allows users to access its service funded by advertisements for free using a desktop. Listeners can opt for a paid service without advertising that works across all platforms, including mobile devices.

More than 20 percent of its subscribers choose the paid option, according to Spotify’s website.

Pandora

Oakland, California-based Pandora, the leader in Internet radio by registered users, offers its service in the U.S., Australia and New Zealand. It had 200 million registered users in the first quarter, with 70 million active listeners in April Chief Executive Officer Joe Kennedy said in a May 23 earnings call.

Pandora has a limited international presence mainly because the company has an abundant supply of advertisements from its key market in the U.S., said John Tinker, a New York-based analyst at Maxim Group by e-mail.

Hong Kong users can pay HK$48 ($6) a month to access the premium service of Spotify. Non-paying listeners of Spotify have limited control over song selection and hear advertising.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editor responsible for this story: Robert Fenner at rfenner@bloomberg.net

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