Clubhouse competition? Why Spotify has a better chance with "Greenroom

Due to the hype around Clubhouse - which has already died down - Spotify has now also jumped on the audio bandwagon. Dominik Sedlmeier from El Clasico Media explains why Spotify is maneuvering a bit further towards a monopoly position with the launch and why Greenroom promises more success than Clubhouse.

After this year's hype around the audio-based app Clubhouse, Spotify also seems to want to jump on the bandwagon. Similar to other audio apps, live conversations about culture, sports and music take place in the "Greenroom", so Spotify announces. Especially if Greenroom can be linked with Spotify, the new app shows enormous promise - explicitly for musicians with a large reach on the streaming platform.

But what can Greenroom do that Clubhouse can't? And what happens when the live conversations are also available for listening on Spotify?

First Clubhouse, now Greenroom?

The success of Clubhouse recently proved that users will still be interested in new social media platforms in 2021. A purely audio-based app in which conversations are conducted like a kind of panel discussion.

For a long time Spotify was considered the market leader in the audio world, with exclusive podcasting formats the company from Sweden maneuvered itself further and further towards a monopoly position.

It seems as if Spotify senses a big competition in the Clubhouse app, now the beta version of Greenroom appeared relatively quickly for testing for all interested parties. The two apps are based on the same concept, apart from visual aspects Clubhouse and Greenroom differ only slightly from each other.

A serious head start

Although Clubhouse can score points due to its pioneering position, Spotify could ultimately decide this competition in its favor. The decisive factor here is its position of power in the auditory sector. Both in the streaming sector as well as in the podcasting and radio play sector, the company from Sweden is considered one of the market leaders.

Spotify could now also use this influence to implement Greenroom on the market, as some podcasters and musicians have a close connection, if not financial dependence, on Spotify. In particular, if an artist profile on the streaming platform can be linked to that on Greenroom in the future, these very artists would benefit from the reach they have already generated on Spotify in the form of followers.

It would be a big head start that Spotify could take in this way, as fans could immediately access the profiles of their stars when the two platforms are linked. Whether this feature will actually be implemented is not yet fully determined, but according to Spotify, they are already preparing for it.

Diversity of topics continues

As far as the topics to be discussed in the rooms are concerned, there is currently no difference to Clubhouse; here, too, the topics range from celebrities to sports to coaching and small talk. Even if music streaming initially seemed to be Spotify's hobbyhorse, the last few years have shown that the platform also dominates the podcast market. While the topics of the audio formats are by no means limited here, the diversity of the conversations on Greenroom should be in harmony with the platform.

Podcasters of all topics that have already been able to find an audience on Spotify will also be able to transfer this audience to Greenroom, such a room can be seen as an extension of regular podcasting. So the diversity of topics on Greenroom doesn't hurt the auditory platform at all. Rather, it offers the opportunity to further serve the individual interests of the listeners.

Live or for re-listening?

It's the live factor that makes Clubhouse so special. The conversations take place here in real time. If you don't join in via app, you miss the talk. However, since Spotify already has the infrastructure for on-demand audio content, it's not far-fetched to think about offering Greenroom talks as podcasts to listen to in the future.

If the feeling of exclusivity of the moment is lost, there is also an enormous advantage for the creator. On the one hand, the live conversations in rooms are more profitable if they are also available for later listening for followers who could not be present in the app at the live event. On the other hand, podcasters can involve their listeners directly in the creation of a new podcast episode, responding to their questions and thus producing content interactively. With this potential feature of Greenroom, Spotify would once again revolutionize the podcast world and kick off interactive podcasting.

Conclusion

Greenroom looks promising. Due to Spotify's position of power in the streaming and podcasting sector, this new platform is unlikely to flop. The streaming platform's advantage in terms of awareness and use by countless listeners is also very clear here. For musicians and podcasters alike, Greenroom can be used as an augmentative form of communication, with podcasters possibly even designing their conversations as interactive podcast episodes.

While the idea behind Greenroom is by no means new, Spotify will still manage to slide one step further towards monopoly status with the new platform, putting Clubhouse out of contention.


* Dominik Sedlmeier is CEO and PR Manager of the brand agency El Clasico Media and expert when it comes to marketing, social media and digitalization.

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