But this isn’t just a music problem. The one app beloved by Gen Z is TikTok. Spotify has long seen TikTok as a friend and a funnel. People hear a song on TikTok and then go to Spotify to listen to the whole thing. But TikTok is now more of a foe in a lot of emerging markets, places where Spotify needs to grow to keep Wall Street happy. TikTok has introduced its own music service Resso in Brazil, Indonesia and India, and it’s starting to
get a following.
When Spotify reported disappointing user growth in the
second quarter, it blamed the pandemic, which has made growth choppy and forecasting hard. It cited problems with sign up via a third party provider. (It was Facebook.) But Resso was also a factor.
Spotify isn’t alone here. Facebook has Gen Z problem. Instagram has a Gen Z problem. Netflix might even have a Gen Z problem. Everyone but TikTok finds the younger demo elusive.
The very services that brought millions of media consumers onto the internet and redefined culture are now confronting the challenge of middle age. They have to appeal to a new generation of users raised almost entirely on mobile devices. Spotify published an 31-page report earlier this year about
the listening habits of younger listeners.