The Swedish streaming giant, Spotify, announced on Monday that they have acquired the Tinder of film and television, MightyTV for an undisclosed sum.
Effective immediately, the MightyTV app will be no more, with the entire MightyTV team to be incorporated into Spotify’s Stockholm, New York and Toronto offices.
What is MightyTV?
MightyTV was set up to help consumers that were overwhelmed by choice on streaming services such as Netflix.
The app would essentially curate all available content from subscriptions like Netflix, HBO and Hulu, and suggest movies and TV shows for the user to watch. The app was backed by learning algorithms, pulling together various different data feeds to tailor content, according to the users preference in a Tinder-like user experience..
Spotify’s recent acquisitions
In 2016 alone, Spotify raised $1.5 billion in funding and financing and comes after a series of acquisitions over the last few years:
– MightyTV (2017)
– Sonalytic, a music discovery and identification company (2017)
– Preact, a start-up that helps companies acquire and retain subscribers (2016)
– CrowdAlbum, aggregates photos and videos from live show (2016)
– Cord Project, a voice messaging tool (2016)
– Soundwave, a music discovery start-up (2016)
– Seed Scientific, analytics and personalisation tool ($9.4m 2015)
– Echo Nest, part of Spotify’s recommendation tool (2014)
– Tunigo, a music discovery service in (2013)
What’s the motivation?
Spotify is preparing for an IPO so there is a certain drive towards greater profitability. They are also fast expanding their advertising proposition following the launch in February 2016 of their global programmatic offering. Although advertising revenue only takes up 10% of overall revenue ($219m) for the streaming giant, this has grown dramatically over recent years as Spotify look to create a greater balance between their subscription and advertising funded models.
What does this mean for Spotify and the industry?
Spotify is aligning its service more closely with advertisers keen on extracting greater insight on their consumers to serve more relevant messaging.
Spotify’s VP of Product, Jason Richman said that for Spotify, “recommending traffic to the right user at the right time is the same technological problem as recommending the right marketing message”. Leveraging listener data, MightyTV’s technology will be integrated into Spotify’s data management platform (DMP) and used to serve ads and improve user insights and personalisation.
Aside from the technological applications, there is also the acquisition of MightyTV’s talent to consider. AdTech veteran and founder of MightyTV, Brian Adams, will become the new VP of Technology at Spotify. Utilising the publisher monetisation experience he gained from founding Admeld and running the DoubleClick Publisher platform, Brian will continue to innovate in this area for Spotify and work to extend the company’s programmatic audio capabilities.
Jason Richman sums it up well, “We need to position ourselves such that audio is seen a first-class digital format so that when those dollars start to transition, we’re well positioned to capture them.”
Essentially, Spotify will serve uniquely targeted content to individual customers in an optimal state of mind, presenting better value to advertisers.
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