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Spotify

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by

Alice Svensson

on 4 December 2013

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Transcript of Spotify

Spotify
2010
2011
2013
2012
2009
2008
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
Stakeholders
Artists
Is it worth it?
Record Labels
Users & Target Market
Segments: "Everyone" (aim)
Young generation (reality)

Motivations: Better music quality
Easy tool
Premium version

Meeting latent needs: Playlists
Offline option
Community
Employees
What other ways do you get music?
Who are Spotify's competitors?
Competitors
Sustainable?
Who uses Spotify?
Do you pay for premium?
Why?
Can you give other historical examples of industry-changing businesses?

Spotify's strengths
-simplicity and availability

-playlist sharing (social interaction)

-Facebook integration

-features similar to the ones competitors use

-developed for all systems (iOS, Android, Windows)

-no need to store music
Spotify's weaknesses
-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

Advertisers
AUDIO ADS
High impact
Unavoidable (except with Premium account)
Easy to target
Display & Billboards Ads
Homepage Takeovers
Branded Playlists
Light Box
Overlay window.. content: Flash video, game demos, competitions ..
Served when the user is actively interacting
Huge format
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
Branding
Potential competitor?
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.
innovative
easy to use
compatible
affordable
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!
(Team 4.2)

Ieva Andriusyte
Laura Arango
Kasia Galak
Sigrid Saag
Alice Svensson
Alessandro Tedesco
Full transcript