Spotify just got much bigger as Microsoft plans to shut down its music and streaming services and move their users to Spotify.
Spotify: Brief History
Spotify began its tough journey in 2005-2006 from an apartment in Sweden. The two founders, Daniel Ek and Martin Lorentzon developed the concept and released their beta in 2007. In 2008, the guys began to gain some market recognition and were able to raise $21.6m. That helped them officially launch Spotify in Europe.
By mid-2015, Spotify has 20,000,000 paying subscribers, 75,000,000 overall users and $3B paid out to artists on the platform.
Groove Music: Brief History
As of 2015, Microsoft whipped out Groove Music to attempt to compete with Spotify. By this time, Spotify has enough money and sponsorship that they could be found everywhere; it has evolved massively and raised some $526m in funds.
Groove Music never took off and couldn’t get enough users and subscribers to turn any kind of measurable profit, especially when we compare it with Spotify. It would take Microsoft a very long time and lots amount of resources to get to the same level as Spotify.
Shutting down the Groove
The decision to shut down Groove Music by Microsoft wasn’t surprising to market analysts because it has very little impact on the market against Spotify, Apple Music and iTunes. But the surprise was that Microsoft decided to partner with Spotify.
Making the move
Starting December 31, Groove Music app will no longer support its streaming, purchasing and downloading features. Microsoft promises to move their users to Spotify without effecting all the music and playlists purchased and created by Groove users over the years.
The testing phase begins next week and users are advised to make their move by January 31, 2018. TechCrunch.com says there’s no reason to believe that moving to Spotify would be a great loss for Groove Music Pass customers. Spotify is available on Windows Phones.
Groove on life support
Microsoft says that Groove Music will not go away fully anytime soon. It will be available for playing back and managing music that’s stored locally.
Microsoft is also facing trouble in other areas on the Windows Store: games, video content and books. Competition in these areas isn’t any less fierce to that of Spotify VS Groove Music. Main competitors include Steam for video games, Netflix and Amazon for streaming and books and other services.
Analysts do expect similar patterns in the future.
Are you surprised by this move? How do you feel about this move?
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