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Spotify launches an in-app Disney Hub to lure more fans

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Spotify launches an in-app Disney Hub to lure more fans
FILE PHOTO: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo   -   Copyright  Brendan McDermid(Reuters)
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By Arriana McLymore

NEWYORK (Reuters) – Spotify Technology SA said on Wednesday it will devote a prominent spot in its music streaming app to Walt Disney Co’s extensive music library with songs like “Let It Go” and “A Whole New World.”

The Disney Hub, as the companies are calling the new feature, places soundtracks from Disney’s animated films, Marvel movies, “Star Wars” and other Disney properties in one place. Disney’s catalogue already has a strong presence on Spotify with fans spending more than 2 billion combined minutes so far in 2019 streaming soundtracks, musicals and more.

Disney’s most streamed song on Spotify is “Let It Go” from the “Frozen” soundtrack, followed by “Moana’s” “How Far I’ll Go” and “You’re Welcome.”

Spotify subscribers in the United States, UK, Ireland, South Africa, Canada, Australia and New Zealand will have access to the hundreds of Disney-owned songs.

The two companies did not respond to questions about the financial arrangements behind the deal.

Spotify, the top player in streaming music subscriptions, has struggled with the high costs of licensing music from traditional record labels and is branching into other audio areas that could prove more profitable. Spotify said the hub will roll out additional content, although it did not specify if videos would be available.

Spotify is also ramping up podcast deals as a way to expand.

Disney Chief Executive Bob Iger serves on the board of Spotify rival Apple Inc, which is trying to move from its second-place spot in music streaming.

(Reporting by Arriana McLymore; Editing by Steve Orlofsky)

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