Spotify is a popular streaming service application and will have no problems getting business registration in Thailand but the issue lies with the lack of consumers in Asia that are willing to pay for the monthly subscription fee. This is the case of Agatha, a 22 year old student residing in Yogyakarta, Indonesia. She was recently notified by Spotify that her account is no longer active because it was found out to be a pirated version. She is using the premium version of the app wherein there are no ads, offline listening is possible and unlimited access to songs is possible.
Agatha said that she was able to use the premium version because it was readily available online. Because of this, she can access the app for free which should have been charging her a monthly fee of $3.60 US. This number is not even one per cent of the recently earned money of the company from its stock debut which amounted to $26.5 billion.
Spotify is based in Stockhom and it has one of the highest public offerings in the entire tech industry. This small amount could hurt the company though if a large group of people are using the premium version for free just like Agatha. This could be a rough patch especially in Asia where people are not willing to pay for content but rather rely on pirated contents available online. Crackdowns have been conducted several times but the issue remains to be rampant. This is one roadblock that the company is trying to pass through if it desires to reach its ambition of dominating globally.
In fact, Asia together with Australia and Africa comprised of only 10 per cent of the total user base of the company. Before 2017 ended, it was recorded that 157 million users are subscribed to the music streaming service. This is a small percentage compared to North America where users account for 32 per cent of the total while 37 per cent in Europe.
Spotify must now think of ways to convince users such as Agatha to subscribe to their premium version legally. As big as a company that was able to get business registration in Thailand with ease, doing so can be a challenge and it might take a while before results can be seen.