Spotify is among the most famous music streaming apps globally. Still, it is losing ground to Gen Z.
In an interview with Bloomberg, CEO and Co-founder Daniel Ek discussed how Spotify is attempting to become more appealing to the younger generation, despite losing out to the video-sharing app TikTok.
“What’s easy to forget is that many of us [apps] are now 15 or 20 years old,” Ek said. “We were built for millennials. I’m not a Gen Zer, and it’s something I’m well aware of. I am trying to spend time with young folks pushing the company to go for Gen Z, and later on, Gen Alpha.”
The two problems that Spotify is facing among the younger demographic are podcasts and a new music streaming service called Resso. Spotify found that the younger generation does not listen to podcasts as much as older listeners, including, millennials, Gen Xers, or baby boomers. And to appeal to the younger audience, Spotify has partnered up with Gen Z influencers Alex Cooper and Addison Rae.
Cooper, 27, is the host of the “Call her Daddy” podcast, with over 2.2 million followers on her Instagram account. The podcast is popular among women between the ages of 20 to 24 years old.
In the past, TikTok users could hear a song in a 15-second clip on the video streaming app and then go to Spotify to listen to the song in its entirety. However, Resso has cut out Spotify as the middleman, gaining its popularity with over 15 million installs on the app store and Google Play as of Aug. 2020.
Spotify is developing new tools for the app that appear to be popular with younger audiences. One of Spotify’s tools is a “new destination” that will offer snippets of songs and snippets of podcasts.
Taking inspiration from TikTok, this format offers more video in a shorter form, appealing to younger users.