Spotify’s less-than-stellar quarter can be partially blamed on its decision to pull out of the hardware business. As part of its earnings, the streaming service has announced that it has discontinued the Car Thing player. In a statement to Engadget, a company spokesperson blamed “several factors” for the decision, including consumer demand and supply chain issues. The exit hurt Spotify’s gross.
Spotify stated that the existing Car Thing division will continue to operate as expected. Despite its short history, the company said that it still “learns useful lessons” from the device and that the car remains an “important place” for audio. As of this writing, you can still get Car Thing for $50 (compared to the regular $90).
Spotify first broke the news of Car Thing in 2019, but after months of invite-only sales, the finished product was released to the public earlier this year. It’s essentially a non-streaming Spotify car player that offers the company an informative experiment. The low demand is not surprising. Many cars can access Spotify via Android Auto, Apple CarPlay or the built-in app – Car Thing is primarily useful for older car owners who want to upgrade their music streaming but don’t want to install a phone.
The cancellations came despite other positive signs. Spotify’s free and paid listener bases continue to grow (433 million and 188 million subscribers, respectively), and its shift to audiobooks and podcasts is paying dividends by lowering the relative value of music label royalties. The demise of Car Thing theoretically helps Spotify focus on these successes and prepare for a widely anticipated global recession.
Post time: Sep-17-2022