Partnerships between music subscription services and telecommunications companies have been fairly common in Europe and elsewhere outside the United States. Here are four examples that are helping shape the digital music business.
Spotify and Vodafone (U.K.): Subscribers to Vodafone’s new fourth-generation service can get up to two years of Spotify Premium included with the service. One challenge for Spotify was being offered as a bundle alternative to popular soccer-match video highlights from Sky Sports.
Spotify and Telia (Sweden): In 2009, Internet service provider Telia established a two-year partnership with Spotify to offer the music service to its mobile and broadband customers. In 2011, when the partnership was extended, Spotify said 25% of its Spotify Premium subscribers in Sweden were acquired through Telia.
WiMP and Telenor (Norway): WiMP, which had 370,000 subscribers at the end of 2012, partnered with Telenor in 2010. Telenor customers get WiMP free as part of the “Complete Music” mobile plan that costs 299 krone ($50) per month. The company believes the partnership renewed last year will generate 30 million krone ($5 million) in two years.
Deezer and Orange (France): Deezer partnered with mobile carrier Orange in its home country in 2010. (The two have also partnered in the United Kingdom, Poland and Ivory Coast, among other countries.) Subscription services have found good adoption rates in France. In the first half of 2013, subscriptions accounted for 27% of digital revenue and roughly 10% of total revenue.