A few days ago, Spotify technology SA (Ticker NYSE:spot) Sent an invitation to the media for the April 24 event. No clues on that route, except for a vague “news, announcements”.
However, the company sent some of its customers offer for cars Spotify player –apparently by mistake, as suggested, quickly disappeared. Given that hint and, according to rumors, the interest in Spotify in hardware, there is a good chance that Spotify is an event to announce this device.
Given that the place shares only began trading last week, an event so soon after may have a significant impact.
Hardware ambitions in Spotify
Spotify is still the world’s biggest music streaming service. This position has ensured that the most intelligent speakers — with the notable exception of Apple with (indexshares aapl) HomePod — service support. Each of them, in fact, a Spotify player, but they are also one firmware update away from losing that support.
However, the company obviously did not want to rely on equipment to a third party. In February, job ads revealed that the equipment is Spotify, which was in the pipeline. Given the huge market growth in smart speaker, and the participation of so many technology companies (many of which also have their own competing streaming services of music), the interest of Spotify is not unexpected.
In-Car Spotify Player Leaked
Another hint that the company was also arrived in February, when the number of clients of the service Spotify received an offer from the company. He showed a round device with led ring, few physical controls, and it was clearly mounted on the dashboard. In-car Spotify player.
According to the verge, offer in-car Spotify player went out on a few subscribers. And there were variations. For some hardware the Spotify service was offered as part of the subscription is $12.99; for others, it was $14.99 a month. According to some reports, the device will be offered the option of cellular communication. Some customers said that it supported Amazon.com Inc.’s (NASDAQ weekly) Alexa voice assistant.
Two things all these cases have in common is that the equipment was clearly in the car Spotify player, and quickly disappeared.
24 April Spotify
This brings us to a mysterious event on April 24, Spotify. What news would the company produce what is important enough to justify conversations with journalists in new York?
Equipment Spotify does not seem a safe bet. But tips February can indicate that the car is Spotify player, not a smart speaker. And it makes sense from a strategic point of view. Market smart speaker is huge and is growing rapidly, but it is dominated by Amazon. Trying to break in can be risky if all is not perfect.
HomePod Apple is a good example of how a private streaming music service, big name and quality of the equipment is not a guarantee of making a big splash. With the debut of the Spotify smart speaker and maybe on the flop would not be good news for the place of the action.
In one place, these smart speakers are not located, however, in cars. Spotify listeners spend a lot of time in their cars, and although some new models can include both carplay system from Apple, most listeners probably relying on the smartphone connects to the car stereo via bluetooth to stream music. There is a possibility for Spotify to capture the leadership position by releasing a separate in-car Spotify player that will let its customers stream music without using their smartphones.
Perhaps even increase its subscriber base — especially with those proposals that were sentenced, added a few dollars to a monthly subscription to Spotify, which requires no cash outlay. It does not have the same risk as going head-to-head with the mighty Amazon Echo, but may pave the way for this later.
We’ll have to wait until April 24 to find out for sure what the company has planned. But in the car Spotify, the player looks like the main contender at the moment. And entry in the hardware — especially in a market where competition is not as fierce as in the living room can have a significant foot in the place of the action.
At the time of this writing, brad moon not to take a position in any of the above securities.