Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Spotify - Essay Example

Comments (0) Cite this document
Spotify Name: Instructor: Course: Date: Introduction Spotify is a London based company founded by Swedish entrepreneurs Daniel Ek and Martin Lorentzon in October 2008. Ek was former chief technology officer of Stardoll, and Lorentzon had cofounded digital advertising network TradeDoubler…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Read Text Preview

Extract of sample "Spotify"

Download file to see previous pages The premium version was free of advertisements and allowed users to customize playlists as well as gain sneak previews. After downloading Spotify’s application to their computers, listeners could select genres, create playlists, or listen to music “streamed” over the Internet. Users were not allowed to download or copy songs. Initially, the company was intent on controlling their customer base. To achieve this, Spotify was offered on an invitation basis only. In the first three years of operation, Spotify had spent $7500 on marketing, leveraging instead word of mouth and its members-only model to build a buzz in the press and the on-line blogosphere. The audience was growing by about 25% a month since its launch in March 2009, reaching the 1 million mark on August the same year. Critical to its business model was the cooperation of major music labels, which Ek secured following extensive negotiations. Under these agreements, Spoify committed to paying royalty for every song played, regardless of advertising revenue earned (Aaker & McLoughlin .p.122). It was evident from the collapse of competitors that an ad-supported model was not sustainable in an uncertain economic climate. Furthermore, with revenues from advertising underperforming, Spotify realized that, in order to grow and fund that growth, it needed to secure relationships with suppliers and other business network partners. By the end of summer 2009, an equity deal was agreed with one major music label, and a partnership had been formed with another company to sell tracks alongside its ad-supported and subscription based services (Aaker & McLoughlin .p.123). Management was confident that the next phase of their strategy could be implemented. Within the first three years of operation the company had reached a total user base of 20 million with 5 million of these users paying the monthly subscription fee of $4.99 or $9.99. In its short history, the company had grown and changed rapidly. In terms of the future directions, it was faced with a number of complementary opportunities; entering the US market, launching a mobile-phone-friendly version of its software, and partnering with investors like Li Ka-Shing to develop new business opportunities (Aaker & McLoughlin .p.124). Digital music industry The digital music industry can be split into two segments: the streaming market with so many competitors and the digital download whose main players are Amazon and iTunes. The industry has demonstrated potential with an 8% growth in revenues in 2011, in the same year the overall industry was valued at $5.2 billion. Presently, the streaming market is only responsible for 10% of the total revenues generated by the digital music industry. Optimistically, the market holds the biggest growth potential as compared to the download market. The numerous competitors in the streaming industry apply very similar business models. They rely on slight differentiations based on packaging, licensed music libraries, operating regions, and features to cut an alternate niche (Hartley et al 2003.p.243). There are high switching costs for customers as there is less compatibility making transfers difficult. Additionally, streaming companies are continually investing in new network effects across their service by incorporating social components. A number of streaming companies allow individuals to follow what their friends are listening and also accord them a chance to create collaborative playlists. This network effect can ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Spotify Essay Example | Topics and Well Written Essays - 2000 words - 3”, n.d.)
Spotify Essay Example | Topics and Well Written Essays - 2000 words - 3. Retrieved from
(Spotify Essay Example | Topics and Well Written Essays - 2000 Words - 3)
Spotify Essay Example | Topics and Well Written Essays - 2000 Words - 3.
“Spotify Essay Example | Topics and Well Written Essays - 2000 Words - 3”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


How will Spotify change the traditional music industry

... in full swing, and that most entertainment-based consumer products right now already come in digital formats, there are already a wide array of music that is present on the internet, and more and more people already chooses the internet as a way to listen to their personal music playlists, especially through streaming. Given this background, there are already several companies that are aiming to make money out of offering music streaming to millions of consumers worldwide, and one of the biggest of these companies is Spotify (Youngs 2010). Spotify is actually a Swedish company that gives streaming services to consumers worldwide, and makes money from it through the advertisements and merchandise sales posted in the site as consumers stream...
12 Pages (3000 words) Assignment


...? SPOTIFY Table of Contents Executive Summary 3 Introduction 3 Developing Enterprise Strategy 4 Strategic Tools 5 The Five Forces Model 5 Three Generic Strategies 6 Value Chain 7 Evaluating Enterprise Strategy 7 Formulation and Evaluation of Alternate Strategies 9 E-Marketing 9 Customer Relationship Management 10 Supply Chain Management 11 Conclusion and Recommendations 12 Reference 14 Executive Summary SpotifyTM is cloud based music streaming service delivered via desktop and mobile phones. It was launched in October 2008 and offers subscribers access to vast database of music via internet. It faces strong competition from the like of Amazon, Google, and Apple which also offers cloud based services. In such a situation it is very...
8 Pages (2000 words) Essay


...? SPOTIFY Table of Contents Executive Summary 3 Introduction 3 Formulate and Developing Business Strategy 4 Evaluation of Strategy 5 Formulating Alternative Strategies 8 Customer Relationship Management 9 Supply Chain Management 10 Conclusion and Recommendation 10 References 12 Executive Summary SpotifyTM is cloud based music streaming service delivered via desktop and mobile phones. It was launched in October 2008 and offers subscribers access to vast database of music via internet. To maintain such large database the company would require effective managing of its information system. The organisation strategy and the information strategy of SpotifyTM depend on the business strategy of the company. The strategic framework of SpotifyTM...
8 Pages (2000 words) Essay


.... Through the two theories, Spotify has been identified to be a major competitor in the entertainment industry but lacking a high level sense of taking advantage of opportunities that it has. Some of these opportunities are key markets in key continents like Africa and South America where virtually no markets exists for the company. With the increase of technology in all of these continents, the company is in a position to take advantage. Finally, there is a recommendation for the company to have its own software to make access to music even easier. Introduction Cloud-based music-streaming services are becoming quite common of late with the advent of high speed internet technology (Boyer et al, 2007)....
8 Pages (2000 words) Essay

Spotify E-Commerce

... in promoting their products to clients. According to Gilmour (2012), Spotify uses cost leadership, product differentiation and generic strategies in the market. As discussed in the report, innovations are vital to success at spotify. The discussion is highlighting the implications of technologies at Spotify, the types of technologies used by the company, and the information systems used in conducting operations at the company. The report’s aim was to analyze the strategies that Sportify uses in conducting its operations in the global market, thereafter make recommendations that will suit the interest of the company. According to Sehgal (2010, p. 12), the report used online content in analyzing the stratagem that Sportify use in the market...
11 Pages (2750 words) Essay

Customer relationship management for Spotify music download (UK)

.... The revenue comes from users that go through to the site to check out their profile and tracks. Since streaming was just a side feature and didnt really fit in with the companys business plan it was certainly an expensive feature in terms of licensing fees and cutting it seems to make a great deal of sense. * Spotify has a problem with Apple, Apple reveals new regulations regarding app advertising and analytics. This found on the venture beat website. Device Data may not be provided or disclosed to a third party without Apple’s prior written consent" this is huge problem for the value chain for Apple users but a bigger problem for Spotify. * Spotify markets need specific...
5 Pages (1250 words) Essay

Spotify highlights

... for those songs in so doing the song can become a trending song and a benefit to both the artist and Spotify as a whole. For instance, the use of YouTube to promote new songs has enhanced the accessibility of songs and rating. Artists are paid depending on the number of views a song has attracted. The song “The blacker the berry” by Kendrick Lamar is nice and not all his fan were able to grab an audio copy of the song. On YouTube the song, it had three million views in a span of one day. This clearly shows social media has an influential capacity to songs. The reason Spotify has added users rapidly is because of its tie-ups with social media sites (Boström, Raoul, Kieran, Bidisha, Juan, and Skee, 2). Social media is the marketing platform...
1 Pages (250 words) Article

Implementing Schedule of Time Management

...Running head: PHASE 5 INDIVIDUAL PROJECT PHASE 5: Individual Project Affiliation October 2008 How often have you heard it said that planning is waste of time? No sooner is the plan completed than someone comes along to change it. These same naysayers would also argue that the plan, once completed is disregarded and merely put on the shelf so the team can get down to doing some real work. To people management, we mean the planning activity that involves deciding on the types of people in form of resources that are required to fulfill the requirements of the project. In other words the types of skills and number of workers we need to complete the project (kwysocki, 1997). Whenever we talk about the methods involved in the project... head: PHASE ...
6 Pages (1500 words) Coursework

Measuring Brand Equity

...Table of contents Introduction and Problem Area 4 1 Introduction 4 2 Research Motivation 4 3 Research Questions 5 4 Summary 6 2 Literature Review 7 2.1 Introduction 7 2.2 The Concept of Brand 7 2.2.1 Brand definition 7 2.2.2 Product brands and corporate brands 9 2.3 Brand Equity 10 2.3.1 Measuring Brand Equity 11 2.3.2 Customer-based brand equity measurements 13 2.3.3 Comparison Aaker’s model with Keller’s Brand Equity Model 14 2.3.4 Conclusions of the comparison 19 2.4 Operalisation of Measurement Customer Based Brand Equity 19 2.5 Brand and Brand Equity in Services 24 2.5.1 Branding Services 24 2.5.2 Brand Equity in Services 25 2.6 Higher Education and its Marketing 26 2.6.1 The Education Sector as a service 26 2.6.2 Literature... of...
63 Pages (15750 words) Research Proposal

Universal Declaration of Human Rights

...Hello, I have read this and thinks it’s perfect I have slight amendments which are highlighted in red. thanks Universal Declaration of Human Rights Introduction Human rights are defined as, the basic standards by which we can identify and measure inequality and fairness. These rights are specified in the Universal Declaration of Human Rights.1 The United Nations adopted the Universal Declaration of Human Rights (UDHR) on the 10th of December 1948. It consists of a number of civil, cultural, economic, political, and social rights. Although, it is not legally binding, it provides an authoritative interpretation of several articles of the UN Charter; and the latter is binding on the member states of the United Nations.2... I have read this and...
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Spotify for FREE!

Contact Us