On Friday, popular music streaming service Spotify announced it would be discontinuing its Clubhouse competitor, Spotify Greenroom.
The decision to shut down the project was attributed to declining interest and engagement rates. The app was designed as a place for artists to host exclusive streaming performances, livestreams, and Q&As, but the concept failed to gain the traction needed to keep it running.
In a statement, the company wrote, “At Spotify, we strive for continual innovation and experimentation in order to better construct the audio experience for our users. In that spirit, we recently tested a new experience within the platform called Spotify Greenroom, which allowed artists to interact with Spotify users in an exclusive space. Ultimately, we decided this concept was not resonating, so we closed the doors to Greenroom at the end of March.”
The decision to shut down Greenroom comes at a time when the audio streaming space is becoming increasingly competitive, with services such as Apple Music, Amazon Music, and YouTube Music all vying for market share. With competition so fierce, it seems Spotify chose to focus its resources on building up its core music streaming offering rather than investing in a side project that wasn’t gaining favor among its users.
Spotify Greenroom’s short life serves as a reminder that no matter how innovative and intriguing an app may be, if it fails to gain a significant user base, then it may not be worth keeping around. With the success of apps like Clubhouse, which has become a popular destination for musicians to engage with fans, it appears that the audio streaming space is only getting more competitive. Spotify’s decision to shut down Greenroom indicates that the company is taking that competitive environment seriously and is prepared to make tough decisions in order to stay competitive.
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