By: Gigaom
Songkick’s Spotify gamble pays off: 100,000 new users
Songkick says that its decision to develop a Spotify app is paying dividends, bringing 100,000 new users to its concert-finding service in the last four months.

Four months ago when Spotify launched itself as a platform for music apps, we were skeptical about its potential: after all, it wasn’t exactly clear what the payoff was for those who would develop for it.

Now events listing service Songkick has said it’s getting what it wanted from the deal, having gained 100,000 new users through its Songkick Concerts app since December — a figure that means it’s happy with the decision to develop for Spotify’s platform.

“We’ve delivered alerts for over fifty thousand unique concerts, from Madonna shows in arenas to tiny bands playing in coffee shops,” CEO Ian Hogarth, who recently raised a $10 million funding round from Sequoia, told me.

He says that the numbers are line with what the company wanted, and represent a successful attempt to bring in Spotify users who had not previously used Songkick. In addition, Spotify-sourced users are proving active, valuable new customers.

“Part of the reason anyone would be on Spotify’s platform is user acquisition,” he said. “And they are great users: they’re engaging heavily, they’re buying tickets and going to concerts.”

Compared with other apps, however, Spotify remains relatively niche, even for those building music-heavy products. When Songkick launched its iPhone app last summer, for example, it gained 100,000 new users in 10 days — more than 10 times faster.

But, Hogarth points out, user numbers mean that “the iPhone was a much bigger platform in general.”

One hundred thousand new users is not going to significantly move the needle for a site like Songkick, which has more than 8 million registered users. But it is evidence that Spotify could be an important place to be for some developers. And that’s news that will soothe those who are thinking of buying in, or those — such as record labels Sub Pop, Ninja Tune and Matador — who have recently decided to launch through Spotify.

Plus it’s another filip for the streaming service, which is rumored to be seeking even more funding at a huge valuation as it seeks to outrun competitors like Rdio.

Earlier, Spotify received another boost when a survey of British advertisers named the streaming startup as the top-rated outlet for advertising. The Institute of Practitioners in Advertising asked 259 planners, strategists and ad buyers for their thoughts, and in the reckoning Spotify beat much larger platforms like Tribal Fusion, AOL and MySpace owner Specific Media.

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