Spotify Takes On The $316.2 Billion E-Learning Industry As It Tries To Finally Become Profitable

Spotify recently released a new feature — video educational courses, initially rolled out in the U.K. market.

Partnering up with platforms such as BBC Maestro, PLAYvirtuoso, Skillshare and Thinkific, Spotify brings video content directly to Spotify users on its platform. 

Dubbed “Spotify Courses,” this new feature operates on a freemium model, granting free and premium users access to two complimentary lessons per course, with the option to purchase additional content. 

Don't Miss: 

• Executives and founders of Uber, Facebook and Apple are bullish on this wellness app that you can coinvest in at $1.15 per share.
• Harvard-founded AI startup is solving paywalls, growing 5x yearly and looking for new shareholders.

"Testing video courses in the U.K. allows us to explore an exciting opportunity to better serve the needs of our users who have an active interest in learning," said Babar Zafar, VP of Product Development at Spotify. "Many of our users engage with podcasts and audiobooks on a daily basis for their learning needs, and we believe this highly engaged community will be interested in accessing and purchasing quality content from video course creators. At Spotify, we're constantly striving to create new offerings for our creators and users, and having built best-in-class personalized music and podcast offerings, we look forward to exploring the potential of video-based learning on Spotify."

The European market has been particularly robust for Spotify, with 38% of its premium users located there in Q4 of 2023, making the U.K. an ideal testing ground for this new feature.

Despite having 236 million premium subscribers and generating $3.17 billion in revenue in 2023, Spotify has grappled with profitability, culminating in significant workforce reductions with three rounds of layoffs, affecting 2,200 employees last year.

Trending: Long overdue disruption in the moving industry is underway. Here’s how to invest in it with just $100.

The integration of educational courses represents a strategic diversification of revenue streams within Spotify’s business model. 

Introducing courses enables Spotify to add another revenue stream to its business model. It has previously seen success in education or self-help content, with about half of its premium users engaging in such podcasts. 

Given the exponential growth of the global e-learning industry, valued at $316.2 billion in 2023 and projected to reach $661.6 billion by 2032, Spotify’s venture into this sector holds considerable promise.

The curated courses span a wide range of subjects, including music, art, business and healthy living, catering to the diverse interests of Spotify’s global audience.

Spotify has witnessed an increase in its stock price, surging over 35% this year, signaling positive investor sentiment toward its strategic initiatives.

Read About Startup Investing:

• Fortnite’s creator company greenlights partial ownership for investors in the upcoming series.
• This startup coined “eBay for gamers” with a breathtaking track record has opened up a window to invest in its future growth.