One of the keys to the longevity and relevance of a business is to stay ahead of the times. Uber didn’t just disrupt the taxi industry. They also regularly enter the food delivery business with Uber Eats.
McDonald’s, with its recent acquisition of a tech company for $ 300 million, is further proof that no matter what the industry, it is imperative to look to the future and look to the future.
With that in mind, Spotify is about to purchase its third podcast company, Parcast, which specializes in mysterious themes and criminal audio content. The other two Spotify companies purchased were Gimlet and Anchor.
Spotify is known as the world’s largest and most popular music streaming service. But these moves indicate that Spotify has its eyes on a much bigger target: to become the Netflix of audio.
Spotify has quietly morphed into the world’s largest podcast publisher because it offers more in-house shows than its competition. Spotify subtly switching to podcasts makes a lot of sense as they would have a new revenue model that’s more under their control than music.
With music, Spotify does not have full ownership. Hence, they have to pay royalties to different music labels every time you listen to your favorite artists.
Maybe your operation is not as complex or as grand as Spotify. However, there is still one key lesson that is essential to adhere to for your future success.
Which segment are you going to own?
Reading this and thinking about it a bit more, I couldn’t help but think that the business world is more and more micro-centered.
Even companies like McDonald’s are becoming more specific in their strategy by targeting personalized drive-thru menus based on customer backgrounds. In essence, they’re going to own the personalized drive-thru experience (and the personalized fast food segment as a whole if we’re being honest).
Although Spotify is the biggest streaming service, they still can’t take full ownership of it due to the royalties that have to be paid.
With the avenue of the podcast, potential audience development and various brand sponsorships can arise in which Spotify has full control. It becomes much more profitable in the long run while remaining a priority for consumers.
How can you embrace what Spotify is doing to not only stay relevant but profitable in the long run?
It starts with refining your goal first, especially for start-up entrepreneurs. Next, what is a possible segment of people who are not being served properly and which will only grow in the future?
If you look inside the health care industry, for example, baby boomers are a prime target. This is a segment that will grow and that will have funds available for the services offered.
Just as Spotify has assessed the current market and then predicted where things are going to stay relevant and competitive in the future, you can do the same for your particular industry as well.