Spotify is ahead of a big challenge in scalability? Can Clubhouse become a threat?

Spotify, the Swedish startup undoubtedly made a massive impact on how we consume audio in the digital age. The audio streaming platform allowed people not only to stream music for free but also it allowed the music industry to overcome music piracy, which was a massive threat back in the 2000s. However, since its initial launch in 2008, the company had to face plenty of challenges to become the public company you see now, which is valued at 44 Billion dollars (As of May 2021).

The audio streaming industry is one of the most competitive industries, having major players like Apple, Amazon, and Google competing against Spotify. However, as of the second quarter of 2020, Spotify holds a 34% market share leading the audio streaming market. (Counterpoint, 2020) Spotify is doing financially well after the pandemic compared to its pre-pandemic financial figures. (Spotify, 2021) But the company is struggling not only on attracting more advertisers to the platform but also with its low royalty rates paid to artists, ranging only from $0.0026–0.0049 per stream (businessofapps, 2021).