Spotify signs a marketing deal with Coca-Cola

by on April 19th, 2012

To expand its reach and get more people to sign up for its digital music service, Spotify has just signed a global marketing deal with Coca-Cola.

The deal would involve Spotify powering the technology behind Coca-Cola Music. Spotify will be integrated into Coke’s Facebook page, where it boasts more than 40 million fans. Coke will also leverage the Spotify API and platform to develop several music-related applications. The initial Coke app for Spotify, created by the companies, during a two-day “hacker day” is expected to debut in the coming weeks.

For Spotify, which operates in 13 countries, and has more than 10 million users worldwide, including 3 million paid members, the new deal would help gain access to Coca-Cola’s global customer and fan base, and help the music –streaming service expand its in additional markets.

Although the partnership does not involve any money changing hands, both parties describe it as invaluable to their efforts to market their products.

“The fact that they’re partners with labels was important to us. But first and foremost, we just fell in love with the service,” said Emmanuel Seuge, head of global sports and entertainment marketing for Coca-Cola.

Prior to announcing the Coke deal, Spotify had signed similar advertising deals and created branded apps for companies such as AT&T, McDonald’s, Intel and Reebok.

Last week, Spotify founder Daniel Ek told Reuters that the company will take in revenue close to $900 million this year, but ruled out the possibility of an IPO in the near future.

“We want to build this company over the long term. Therefore the stock market is not an alternative for us,” he said.

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