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Spotify Became the First Music Service in Facebook’s Libra Group

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Jul. 1 2019, Updated 9:51 a.m. ET

Libra group draws almost 30 inaugural members

Spotify (SPOT) became the first major online music service to join Facebook’s (FB) Libra cryptocurrency group called the Libra Association. Spotify was among the almost 30 inaugural members of the Libra Association, a list that also includes ride-hailing companies Lyft (LYFT) and Uber Technologies (UBER).

According to Spotify, it joined the Libra Association because it sees opportunity in the Libra cryptocurrency to better serve its existing subscribers and bring even more subscribers into the fold from developing markets. The company says that there are 1.7 billion adults worldwide who are left outside the formal financial system and are unable to fully enjoy its music streaming service as a result.

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Spotify counting on Libra to support its global expansion

Spotify believes that Libra will expand financial inclusivity and allow it to reach more people around the world with music, expanding its business in the process. eBay (EBAY) has also said it joined the Libra Association because it sees Libra expanding e-commerce opportunities for shoppers and merchants. For the likes of Lyft and Uber, which are working to introduce ride-hailing services to more people around the world, the shortage of access to financial services in developing markets is also a major headwind.

Spotify offers free and paid music streaming plans. Its paid subscription sales jumped 34% year-over-year to $1.6 billion in the first quarter, contributing 93.3% of the company’s $1.7 billion total revenue in the period.

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