Spotify, the $16 billion digital music “startup” that’s hotly tipped for an IPO, continues to put the groundwork to diversify its platform past primary streaming. Within the newest developments, the corporate goes to start out promoting magnificence merchandise. Sure, you learn that proper, now you can purchase make-up on Spotify.
The brand new service is the newest growth of Spotify’s partnership with Merchbar, which Spotify began working with final yr to promote artists’ merchandise on their profile pages. Working with fashionable make up artist Pat McGrath and musician Maggie Lindemann, Merchbar is now transferring into areas adjoining to direct merchandise, in order that followers can ‘store the look’ of a specific artist, a big theme for a way merchandise are offered on different social media websites like Instagram.
“On this digitally-empowered, digital period of make-up, the place followers crave instantaneous glamour gratification I all the time need to attain followers the place they’re most engaged. That’s why this relationship with Spotify is totally main, as a result of it merges magnificence and music in a complete new means, that’s by no means been accomplished earlier than,” mentioned McGrath in an announcement. “I’m thrilled to see it lastly come to life.”
McGrath — a make-up artist to the celebrities with an enormous social media presence — has her personal enterprise, Pat McGrath Labs, and it will likely be kicking off the partnership promoting three shades of her lipstick, every retailing for $22, in addition to an eye fixed pencil for £18.95 (UK worth), amongst different gadgets.
Lindemann can also be launching a brand new single to coincide with the launch.
To be clear, this isn’t a brand new income stream for Spotify, which doesn’t take a minimize of any of the gross sales that occur by the platform. The concept, as a substitute, is to sweeten the deal for artists and provides them extra alternatives to make cash on Spotify past streaming.
This is a vital effort, since Spotify has been accused by some as being a wrestle so far as creating wealth from music goes, as a result of the royalties that get collected on music performs quantity to small numbers for anybody however the preferred artists (and even these have complained). And so the corporate has been on a protracted marketing campaign to show that picture round. (It’s additionally made acquisitions that time to the way it may additionally assist artists market themselves to enhance their enterprise prospects.)
It’s additionally serving to artists in different methods, which could be requiring extra funding and getting extra returns than the merchandising effort for Spotify. Earlier this yr, Spotify launched a brand new live performance occasion in London, Who We Be (based mostly on one in all its fashionable playlists) and simply right this moment introduced it had offered out tickets. It has equally offered tickets within the U.S. for RapCaviar Reside, a six-city hip hop tour additionally tied in with music on its platform. Whereas ticketing turned out to be a sophisticated enterprise for the likes of Pandora, which ultimately offered off its Ticketfly enterprise, it is a signal of how Spotify is perhaps trying, as with the merchandising, to develop these adjoining areas as a approach to construct its neighborhood first, earlier than it makes extra complete strikes into different enterprise traces.
Spotify wouldn’t touch upon whether or not the wonder launch with McGrath would be the first of many such partnerships, or whether or not McGrath or Merchbar will likely be increasing the vary of things on provide.
Extra to the purpose, it’s a sign of how Spotify, which now has over 60 million paying customers, and over 140 million customers total (together with those that pay attention ad-supported, totally free), is making an attempt to leverage its viewers to increase the horizons for enterprise folks on its neighborhood — which in Spotify interprets to musicians.
“Maggie Lindemann is an especially thrilling younger artist, with over 7 million followers listening to her everywhere in the world each month on Spotify,” mentioned Jordan Gremli, Spotify’s Head of Artist and Fan Growth, in a statemet. “In partnering with Pat McGrath to supply magnificence merchandise on this revolutionary new means, she will likely be connecting instantly along with her followers within the place the place they go to get pleasure from her music already on Spotify.”
Whereas Spotify is just not getting a minimize on these gross sales, it might assist the corporate maintain artists devoted to utilizing it for his or her advertising efforts, and customers coming again to do extra on the platform than simply take heed to music, remaining sticky on either side of its market.