Young woman with pink hair streams her music with Spotify's gated, exclusive offer for students.

Spotify’s New Project with the Obamas Creates Product Differentiation

Spotify is the trendsetter of personalized, exclusive content, and its user-first approach creates successful product differentiation. As a result, Spotify reported 100M Premium subscribers and more than 217M monthly active users this year. What’s more, the company’s new deal with the Obamas demonstrates a continued commitment to subscribers.

Cornering Exclusive Content

The recent exclusive contract with former-President Barack Obama and former-First Lady Michelle Obama’s media company creates a feeling of VIP access for users. Through this, the popular streaming platform entices subscribers with easy access to prized content like the Obamas’ new media series. As such, Spotify immediately creates product differentiation through a unique experience. 

Spotify uses personalized marketing and access to new and exciting content to attract long-term subscribers. For example, it added a basic Hulu package to their Premium plans in March of 2019. In addition, it pioneered the student subscription plan for music streaming. With this, students are eligible for a discounted monthly subscription with Hulu+Showtime added in. This type of personalized marketing builds trust with consumers while they’re young and strapped for cash.

Acquiring Subscribers with Exclusive Access

Additionally, Spotify is curating the newest form of media entertainment: podcasts. As it turns out, roughly 25% of the US population listens to podcasts (up 45% from 2015). Spotify’s acquisition of Gimlet Media and Anchor in February was the first step. With the addition of the Obamas’ new media company, Higher Ground Audio, Spotify creates a “specialty” product that users can’t get anywhere else.

As a result, Spotify differentiates its product by adding unique, high-value content for its users. By combining exclusive deals and curated content, it acts as a leader in exclusive marketing.

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