Spotify, the $16 billion digital audio “startup” that is hotly tipped for an IPO, continues to lay the groundwork to diversify its stage beyond basic streaming. In the most recent development, the organization will begin selling beauty products.
Yes, you read that right, you can now buy makeup on Spotify.
The new service is the most recent growth of Spotify’s venture with Merchbar, which Spotify started working with final year to market artists’ product in their profile pages.
Dealing with popular constitute artist Pat McGrath and artist Maggie Lindemann, Merchbar is now moving into areas adjacent to direct product, so that fans can ‘store the appearance’ of a specific artist, a massive theme for how products are sold on other social networking websites like Instagram.
“In this digital age of make-up, in which lovers crave immediate glamour gratification I wish to achieve lovers where they’re most participated. That’s why this relationship with Spotify is major, because it combines music and beauty in which a completely new way’s never been done before,&rdquo. “rsquo, I &;m thrilled to see it come to life. ”
McGrath — a makeup artist to the stars using a huge social networking existence — has her own business, Pat McGrath Labs, and it will be kicking off the venture selling three colors of her lipstick, each retailing for $22, as well as an eye pen to get £18.95 (UK price), among other products.
Lindemann is also starting a brand new single to coincide with the launching.
This is not a new revenue stream for Spotify, which does not take a cut of some of the sales that occur through the platform, to be clear. The idea is to sweeten the deal for artists and give them opportunities to make money on Spotify.
This is an important effort, since Spotify has been accused by some as being a battle as far as making money from audio goes, because the royalties that have collected on tune plays amount to small numbers for anybody but the most popular artists (and even those have whined).
And the business was on a lengthy effort. (It’s also made acquisitions that point to how it may also help artists market themselves to boost their business prospects.)
Spotify can also be currently helping artists in different ways, which receiving more yields than the merchandising effort and might be requiring more investment.
Before this year, Spotify established a brand new concert event in London, Who Is (based on a few of its favorite playlists) and only today announced it had sold out tickets. It has similarly sold tickets in the U.S. for RapCaviar Live, a six-city hip hop tour also tied in with audio on its platform.
Ticketing turned out to be a complex business for the likes of Pandora, which eventually sold off its Ticketfly performance to Eventbrite, but moving to occasions is a sign of how Spotify might be appearing, much like the merchandising, to create these adjacent areas as a way to build its community first, until it considers anything in other business lines.
Spotify would not comment on if the beauty launching with McGrath will be the first of several ventures, or if the assortment of items available wills expand.
More to the point, it’s a signal of just how Spotify, which now has over 60 million paying users, and over 140 million users entire (including individuals who listen ad-supported, for free), is trying to leverage its audience to expand the horizons for business people in its community — which on Spotify translates to musicians.
“Maggie Lindemann is a very exciting young artist, with over 7 million lovers listening to her all over the world each month on Spotify,” said Jordan Gremli, Spotify’s Head of Artist and Fan Development, in a statement. “she and her lovers will be linking where they go to enjoy her music on Spotify In partnering to offer beauty products in this way. ”
While Spotify is not getting a cut on those sales, it could help the firm keep artists dedicated to utilizing it for their marketing efforts, and consumers coming back to do more on the stage than just listen to music, staying sticky on either side of its own marketplace.
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