I was intrigued by Iain Tan’s blog post regarding the partnership between Rogers and Spotify because it involved the two things I appreciate the most: data and music. Rogers, Canada’s largest telecommunications provider, announced recently that they will be partnering with the leading music streaming app, Spotify. What was the motivation behind this decision? Guy Laurence, CEO of Rogers, revealed that the real purpose of joining forces with the worlds top music streaming apps is to increase consumer’s data usage. Providing attachments, such as a 24-month free subscription to Spotify, will entice people to go over their data limit without knowing it.
Iain states that this partnership will benefit “both Spotify and Rogers” and I completely agree. In terms of Spotify, I believe they will see a significant increase in subscribers in their North American market. Since Rogers is the biggest service provider in Canada, Spotify will be exposed to a large number of consumers. Also, I believe Rogers will greatly benefit from this partnership because people will be more compelled to either continue or sign-up with their services as a result of this point of difference. Personally, if I was deciding on which phone service provider to choose from, and they offered me free Spotify as part of my contract agreement, I would accept. This is a very strategic move for Rogers because they will have a competitive advantage by being the only telecommunications provider to offer free Spotify, and that will likely be the deciding factor for many consumers to choose them over their competitors. I fully support this partnership and anticipate to see both companies flourish as a result of it.
