Spotify gives away free Google Home devices
Spotify (SPOT) and Google (GOOGL) have partnered on a temporary rewards program to tackle Amazon (AMZN) and Apple. Recently, Spotify opened a rewards program. The program gives customers in the United Kingdom a free Google Home Mini smart speaker when they sign up for a premium family plan. The family plan costs 15 pounds a month. The offer runs until May 14.
Last year, Spotify ran a similar offer in the United States. Customers who signed up for a premium family plan received a free Google Home Mini device.
Spotify and Google face threat from Amazon
Although Spotify and Google sell similar music streaming services, they’re willing to overlook their rivalry to tackle competitors that pose the greatest threat to their businesses. While Spotify is the world’s top streaming music provider, it’s facing tough competition from Apple and Amazon. As a result, Spotify needs to find new ways to fight back. So far, giving away free Google Home speakers seems to be working.
Amazon is eating into Google’s share of the digital advertising market. Amazon and Apple make smart speakers that compete with Google’s Home devices.
Spotify seeking to defend market share
Spotify held 36% of the global streaming music market as of June 2018, according to Midia Research estimates. Apple and Amazon held 19% and 12% of the market, respectively. Tencent Music (TME) held 8.0% of the global streaming music market, while Google and Pandora each held 3.0% of the market. Now, Pandora is part of Sirius XM (SIRI).