Starting with its launch in the UK, Spotify is testing the ground for an online education that offers freemium video courses. Produced in partnership with third parties such as the BBC and Skillshare, at least two elegances will be free, with the full cost of one elegance. ranging from £20 to £80 on average. The charges will be the same whether you’re a core or premium user, at least for now.
Mohit Jitani, London-based director of products for the school sector, said in an interview that pricing potential options was part of what he was testing before contemplating how to roll it out more widely. “With this launch, we seek to understand the so-called ‘First,'” he said. Then we optimize how we can make it more engaging and exciting. “
The content will be available in Spotify’s navigation and home tabs (under “Courses”), and will be accessible both online and through Spotify’s mobile app.
The courses are located between YouTube, Master Class and LinkedIn Learning: the videos in the existing catalog cover a wide diversity of topics, from music production to learning Excel, to classes on, as you might have guessed, how to create e-learning courses to convert. musicians and others into “creators of education”.
Unsurprisingly, for a market estimated to be worth more than $315 billion in 2023, there are many web-based e-learning sites out there today, some of which have been innovators in interactive content and other media formats; You can even locate several of them. startups aiming for “Spotify for education” if you Google that term: Spotify’s education effort focuses on one-way on-demand video.
Some courses seem to have more variety, even if it’s more of an add-on than quizzes or other interactions. Jitani declined to say whether Spotify will launch any kind of long-term interaction or gamification or, indeed, if games of any kind are being released lately. on your roadmap.
The first partners for the courses are Skillshare (which will focus on creatives), PLAYvirtuoso (music industry courses), BBC Maestro (Master Class style) and Thinkific (for those who are encouraged to expand their skills in their own e-learning courses). .
Spotify, Jitani said, would look to choose the courses it offers and base its choice on what other people are already listening to and searching for on its platform. However, there seem to be no limits. If you take a look at the catalogs when looking at the respective suppliers, you will see that the objects cover a wide box and even bread.
“We’ll be told a lot about what other people are interested in [and] we’ll move on to start creating a lot of segments around that,” Jitani said. “And then we’ll pass by to pass by and find. . . . the most productive content. “
Third-party publishers own the videos and license them to Spotify, but they will be hosted and purchased on Spotify itself. In terms of profit percentage, the creator, publisher, and Spotify will get a percentage of the sales, and the content partners will monitor the invoices. to the creators.
Spotify doesn’t specify what kind of reduction it will pass on to whom, nor whether it will potentially offer any kind of reduction or other perks to users who are already premium subscribers to the platform.
The move is a testament to Spotify’s strategy of continuing to diversify its business, while also seeking to pave the way for more consistent profitability and stronger margins. He chose the U. K. for this, Jitani said, because it’s a huge market for businesses and is already one of the world’s top performers.
Financially, Spotify continues to enjoy many ups and downs in today’s market. Last year, the company experienced three rounds of layoffs; And it’s been more than successful over the years: Maximum recently posted a net loss of $81 million on its quarterly profit in February.
Yes, the arid realms of e-learning and career progression may seem like an arena for an even more well-known music streaming company, but there are three spaces in which it makes sense.
As its podcasting business continues to grow, Spotify collects a lot of information about what other people do on the platform and discovers a strong correlation between some of Spotify’s most popular podcasts and educational content.
According to Spotify, about a portion of Spotify Premium subscribers have listened to podcasts on schooling or self-help topics. Spotify can use the same kind of tips it uses for cross-promoting music and podcasts. Think of a podcast with a “business guru” now recommending a paid relationship with that person. Spotify is that one will help sell the other.
At the same time, Spotify has long offered teams for creators to help them manage and grow their revenue. Offering educational content aimed at running a business or its music production is part of this logic.
Thirdly, the video element. Spotify has been looking to take video to the next level for nearly a decade.
That doesn’t mean it’s still a rival to YouTube or Netflix. The video was discussed only once the company’s latest earnings call was held, in which CEO Daniel Ek vaguely described video podcasting as “healthy growth. “But it introduced music videos in some markets earlier this month. , and now we’re putting a lot of effort into educational videos. You may still find your groove.