New digital services have become a key differentiating factor among Mobile Operators in Europe. While some brands invest in third-party partnerships to offer these services, others shell out to develop their own. In the case of music streaming, that may be a miscalculation.
Most mobile operators prefer to partner with Spotify: 17% of brands in L2’s Digital IQ Index: Mobile Operators Europe offer some sort of Spotify promotion. For example, TIM Italy offers a plan targeted at millennials that provides unlimited streaming from Spotify and Apple Music apps and does not count toward the plan’s data allowance.
In contrast, 14% of mobile operators offering music streaming have opted to create those services in-house. However, given the sizable investment required to build them, not to mention the fact that these digital investments put small regional mobile operators in competition with global tech giants, the study suggests that brands might be better served partnering with third parties.
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