Spotify will launch in Russia next week, and go head-to-head with Apple Music as well as other well-established local operators.
Investment bank Exane/BNPP reports that Spotify is likely to partner with local Russian telcos and target the estimated 144 million potential users and more than 95 million smartphone owners.
“Russia is one of the fastest growing markets for recorded music, with a c50 percent growth according to the latest IFPI data although somewhat smaller in absolute size (only #17 biggest music market globally),” says the bank. “We believe healthy revenue growth for streaming platforms is the growth driver for music labels which are well-placed in the value chain to benefit from the streaming growth.”
The report notes that there are major players operating in Russia already including player Yandex (which launched its music streaming offer in 2010) alongside Boom (vk.com), Apple Music, Youtube Music and Google Play Music already operate in the country.
Statista data gives the Russian market leadership to Apple Music (31 per cent share), Yandex (29 per cent), Boom (29 per cent), Youtube Music (6 per cent).