Music-Related Spending Trends
- Spotify users spend an average of $12 per month on gift cards, with 1 in 5 buying more than $100.
- The most popular genres purchased with Spotify gift cards are Hip-Hop/Rap ($15.6), Pop ($14.3), and Electronic/Dance Music ($13.4).
- Users who buy gift cards on a regular basis (more than once a month) spend an average of $50 more per year compared to those who purchase less frequently.
The Impact of Music Gift Cards on the Industry
Spotify gift cards are a significant contributor to the music industry's revenue, with users spending an estimated $1.3 billion annually.
- Spotify's acquisition of Tidal in 2018 marked a turning point for the company, increasing its market share and driving innovation in the streaming space.
- The rise of subscription-based services like Apple Music and Amazon Music has led to increased competition, forcing Spotify to adapt and invest in new features and content offerings.