Wednesday, February 18, 2015

Spotify and Russia

"I regret to inform you that Spotify refused to launch in Russia in the foreseeable future," Alexander Kubaneishvilsaid, according to a BBC Russia report. "There are several reasons -- the economic crisis, the political situation, the new laws governing the Internet." Spotify, one of the most potent streaming services did not directly comment on the exact reason why they delayed their release in Russia. However, with the country's political turmoil causing the devaluation of the ruble, it is not a surprise. "Since early 2014, the ruble has lost 50 percent of its value and is trading at 66 rubles for a US dollar as opposed to 33 rubles for a dollar in January 2014. Standard & Poor's recently downgraded Russia's credit rating to junk for the first time in a decade."

The current situation of Spotify choosing to not release in Russia shows how distribution of a product must account not only for how it will be accepted or the level of marketing put into it, but also in the present state of politics in each area. The research prior to release, needs to not focus on one topic but on a whole spectrum which includes the political state of the desired place to distribute. 









http://www.billboard.com/biz/articles/news/digital-and-mobile/6458224/spotify-reportedly-cancels-launch-in-russia

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