Spotify Technology has announced it will begin rolling out a new messaging feature for both free and premium users, as part of efforts to expand its user base and strengthen its position in the highly competitive music streaming industry. The feature, which allows users to chat and share music with contacts they have interacted with on the platform, will be available on mobile devices for users aged 16 and above in select markets starting this week.
The Swedish streaming giant previously offered a messaging function but discontinued it in 2017 due to low engagement. This reintroduction comes as Spotify seeks to capitalize on its massive subscriber growth in recent years, with the company now betting that the larger user base will generate more activity and boost overall engagement.
Spotify has been working to strike a balance between growing its users and improving profitability, relying on price hikes to lift margins while facing stiff competition from Apple Music, Amazon Music and YouTube. The firm reported 696 million monthly active users in the second quarter and is aiming to hit the 1 billion mark, according to a Financial Times report.
In addition to messaging, Spotify is investing in expanding its video content offerings. The company has introduced a partner program that provides monetization options for podcast creators, positioning itself not just as a music streaming service but also a broader entertainment platform.