Spotify exploring e-learning opportunities in UK: Check courses and fees
What's the story
Spotify is branching out into e-learning by piloting freemium video courses in the UK. This initiative is designed to deepen engagement with its 600 million+ users and boost revenue. The courses, created in partnership with entities like the BBC and Skillshare, will offer at least two lessons for free. Course fees will range from £20 (nearly Rs. 2,100) to £80 (around Rs. 8,400), regardless of the user's subscription status.
Context
Why does this story matter?
Spotify's entry into e-learning is a user-focused strategy, aiming to deliver more value to its users. The company is utilizing its existing user behavior data to tailor course offerings that match user listening habits and search trends on the platform. This approach not only broadens Spotify's content but also enhances the overall user experience by catering to their learning interests.
CStrategy
Pricing and accessibility options
Mohit Jitani, Spotify's London-based Product Director for the education sector, disclosed that the pricing strategy is part of its trial phase. The company aims to assess demand before contemplating a wider rollout. Users can access these courses via Spotify's home and browse tabs (under "Courses") on the web and through the Spotify mobile app.
Subjects
Broad spectrum of subjects in courses
Spotify's e-learning courses span a wide array of subjects, from music production to Excel tutorials, and even instructions on creating online learning lessons. Initial partners for these courses include Skillshare, PLAYvirtuoso, BBC Maestro, and Thinkific. Jitani stated that Spotify will tailor its course offerings based on user listening habits and search trends on its platform.
Agreement
Revenue sharing and ownership details
The e-learning videos on Spotify are owned by third-party publishers who license them to the platform. These courses will be hosted and purchased directly on Spotify. The revenue generated from sales will be divided among the creator, publisher, and Spotify, with content partners handling payments to creators. However, details regarding revenue division or potential discounts or benefits for premium subscribers remain undisclosed.
Reasons
Rationale behind Spotify's e-learning expansion
Spotify's venture into e-learning is a strategic move to diversify its business and pave the way for more consistent profitability. The UK was selected for this trial due to its substantial market and high user engagement. Jitani highlighted a strong correlation between some of the most popular podcasts on Spotify and educational content, suggesting a growing trend of users turning to Spotify for learning purposes.
Upcoming
Future plans for creators and video content
Spotify is working on tools to assist creators in managing and increasing their earnings, with educational content playing a key role in this strategy. The company has been striving to branch out into video content for several years, making the addition of educational videos a logical next step. This initiative aligns with Spotify's broader objective of diversifying its offerings and boosting user engagement on the platform.