Spotify, the music streaming service, has initiated a media pitch. The review is believed to be global, with Lodestar UM currently serving as the incumbent agency handling its media planning and buying business.
Sources in the industry have indicated that the India team has minimal involvement in the pitch, as presentations and decisions will be made at the global level. Lodestar UM has been the incumbent agency for the past six years.
exchange4media reached out to the Spotify team in India for comments, but they declined to participate in the story. According to estimates, its India business is valued at around Rs 150 to Rs 200 crore. However, reports suggest that its global ad budget is approximately $240 million.
"It is one of the biggest global pitches of the year, and all major agencies are aggressively vying for the account," stated an industry source.
The multi-billion-dollar Swedish music streaming company Spotify is primarily owned by its founders, Daniel Ek and Martin Lorentzon.
According to reports earlier this year, Spotify unveiled plans to revamp its podcast division through structural changes. The company eliminated 200 job roles, impacting approximately 2 per cent of Spotify's global workforce. Before this, in January of the same year, the company announced the termination of 600 employees, citing "macroeconomic conditions."
It's worth noting that Spotify was not alone in implementing layoffs this year. Tech giants such as Amazon, Microsoft, Salesforce, and Google, among others, also disclosed plans for significant workforce reductions.
