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Transcript of Spotify
Spotify receives investment from Founders Fund and Napster's Sean Parker ($15 m in total)
Spotify launches in US
Spotify is launched!
"Ignore the dollars and aim for disruption"
Spotify is available on AppStore
“The music industry has been waiting more than a decade for Ek. Or more specifically, someone—anyone—who could build something (a) more enticing to consumers than piracy while (b) providing a sustainable revenue model."
-Forbes Magazine, 2012
Is it worth it?
Users & Target Market
Segments: "Everyone" (aim)
Young generation (reality)
Motivations: Better music quality
Meeting latent needs: Playlists
What other ways do you get music?
Who are Spotify's competitors?
Who uses Spotify?
Do you pay for premium?
Can you give other historical examples of industry-changing businesses?
-simplicity and availability
-playlist sharing (social interaction)
-features similar to the ones competitors use
-developed for all systems (iOS, Android, Windows)
-no need to store music
-premium functions shut for those without Facebook account
-lack of strict copyright policies (vulnerable to competitors)
-full Facebook integration may cause privacy issues
-we do not permanently own the songs
Unavoidable (except with Premium account)
Easy to target
Display & Billboards Ads
Overlay window.. content: Flash video, game demos, competitions ..
Served when the user is actively interacting
Screen saver when the user is inactive
"high impact, unavoidable format (...) first thing a user sees when they start up Spotify"
How does Spotify advertise itself
Invitations only, word of mouth
Scarce invitations to hype the launch
Tie ups with social media
Support events, innovative advertising
Spotify playlists that contain a branded cover art image and text.
easy to use
How would You advise Spotify to manage its branding to drive growth?
Valuation hits $4 billion
Spotify adds the radio to its platform (making the app available for free users)
Measure of success
Advantages and disadvantages: a complex topic
Is Spotify's business model sustainable?
What strategic paths can Spotify take to ensure success?
Thank you, Federico Pezzotti & Gustavo Marin for hosting us at Spotify!
We are Team Spotify!