SWOT Analysis Presentation

This is McKay Patrick.

And today I'm going to be talking about the potential

merge between Spotify and Pandora.

So first, what is Spotify?

Spotify is a digital music podcast and video streaming service

that allows access to millions of songs and other related

content from artists all over the world.

So if you haven't heard of it, you probably live

under a rock.

Um, in terms of Spotify and it's SWAT analysis, let's

look at those so strength, strong brand reputation and easily

accessible. So, like I was saying earlier, if you haven't

heard of it, you probably live under a rock.

Well, it's because of its strong brand reputation.

Ah, lot of people have it, and if they don't

have it, they probably have something like Pandora or another,

uh, dreaming service.

Currently, the company holds a majority of the current market

share and the highest share of music streaming subscribers in

the world.

Thanks to longevity, stability and a vast selection of music

content. It also provides a wide selection of a audiobooks

and podcasts, and in 2019, it was number one in

streaming and the second most reputable brand when compared to

other brands.

It's also easily accessible, As I was saying, it's available

throughout the world.

While not a service for every country, it is available

for most of North America and Europe.

It's easy to access on both desktop and cellular devices,

and the U.

I or user interface is easily manageable now, in terms

of weaknesses, lots of legal disputes and challenges.

The company has faced many of these that, um, revolved

around streaming service is in general and the fact that

they appealed against a rise in mechanical streaming royalties for

songwriters. So while the company and when I say company,

I'm referring to Spotify used to pay songwriters and publishers

a royalty rate of 10.5% of annual U.

S streaming revenues, which was November of 2018, the government

mandated Copyright Royalty Brand, or C R B, said that

for five years from 2018 onwards the rate would rise

by around 1% annually, so up to 15.1% in 2022.

A lot of artists and or producers were not a

fan of that, um and in order to provide on

demand music, Spotify has to pay these creators, um you

know, for what they choose to provide whatever it is,

whatever the work is.

And this, um, limits the probability of Spotify by taking

a major chunk of the subscription, uh, revenues now, in

terms of opportunities podcast.

So with this pandemic, things have gotten crazy.

And so a lot of people are staying in their

homes. They're not going out.

Most of them are listening to podcasts.

And Spotify is the number one place if you want

to listen to spot to podcasts.

Um, in fact, it is cornering the podcast market.

Um, and it's known for doing it best.

So when it comes to the market, Spotify is the

most popular app for listening to podcasts Also increased paid

subscription users.

So while the company has already established partnerships with many

different providers, it would do well to continue explaining those

partnerships amongst other providers, which in turn would encourage paid

subscriptions for users.

Um, in terms off threats, which is the last portion

of the SWAT announced specifically for Spotify is vulnerable piracy.

So unfortunately, it is one of the most Pirated content

websites on the Internet, which in turn, is not It

does not help.

I mean Although they have a strong brand reputation, it

doesn't It doesn't help the fact that they're so vulnerable

to piracy.

It's not really hard toe listen to music outside of

the company's license system.

And the rights holder of that particular music doesn't really.

I mean, I don't receive any royalties for that usage.

Also. Tech Giants.

Yeah, Apple on YouTube.

Um, they continue to threaten the music streaming space.

Both of them are making headway with their own music

streaming platforms, and as a result, they've robbed the company

of potential success.

Um, instead of saying, Let's partner up, let's try and

work together it's more of Ah, well, I could just

do it myself.

Kind of a scenario now that Spotify let's look at

Pandora and what exactly Pandora is not the box.

Pandora is an American subscription based music streaming service similar

to Spotify and a, um well, its parent company is

serious sex and holdings.

Um, it was founded in, uh in 2000, so it's

a little bit older, actually, quite a bit older, but

it's still around, Um, and it provides personalized listening experience

to 70 million viewers or users.

Apologies. So ah ah lot of people still do have

vandore quite a few people, Um, in terms of strengths

it has experienced.

Like I said, it's been around for a long time,

and obviously it's doing something right.

If it's still here, Um, and it has one of

the largest user bases due to its free version, it

is free.

Um, so when it comes to, the company has experience

in regards to music streaming, Um, and it has continued

to thrive with its large number of viewers.

It also has the Music known project, which will analyze

each song based on 450 different attributes in order to

generate better suggestions.

So because of this, it's radio stations can be customized

by the user in terms, weaknesses, licensing restrictions, right, so

it's only available in the U.

S. And because of this, users are more likely to

encounter a portion of songs that are not allowed to

be skipped.

But there is a skip limit when you're listening to

Pandora, which Spotify does does not have.

Although it does have ads, it doesn't have a you

know, you're not limited to how many times you can

skip a song.

Also limited selection.

Unfortunately, there it only holds, um, I'm very a song

list that, um, there's 1/20 of the song list that

Spotify carries.

Um, and due to this competitive market in the study,

rise of music streaming service is Pandora has a limited

selection when it comes to music in terms of opportunities

mobile. So drafting and establishing partnerships with a car companies

could prove to be very beneficial for the company and

reach a broader audience who might not have been a

previous customer and also nutrients and customer behavior.

Um, new trends regarding this behavior could lead to a

new market for Pandora and provides an opportunity to rebuild

from the ground up.

And it could also lead to diversified products in terms

of threats, growing market.

So a lot of people are doing what Pandora and

Spotify have been doing.

I mean, the number of music stream surfaces has increased

throughout the past couple of years, and it's only continuing

to grow.

And so as a result, Pandora's competitors have doubled, and

all subscriptions of features that rival those of it are

much more appealing and affordable.

Also lack of innovated projects.

So while the company has developed numerous project products over

the years.

Most of these products are in response.

Thio products competitors have developed.

So as it stands, there isn't really anything new or

exciting toe offer.

So when we take a look at these two companies,

both have benefits.

Ah, Spotify, like I said, has a strong brand reputation.

While Pan Door, um, has experienced.

It's been around a long time.

Um, but would the two work well together?

That's the question.

My evaluation, while they both have their difficulties and challenges

of their own, emerged between the two would result in

one last competitors, ER and an increased overall market value.

A lot of people who have Spotify well, I say

a lot.

There is a small majority of people who have Spotify

who also have Pandora, um, different types of music available.

Um, it is Ah, it's ah, it's a counterbalance for

each company.

So while one you know has something better than the

other, the other could make up for it.

That kind of scenario.

And so, like I said, Pandora's experience as a music

streaming service paired with Spotify strong brand reputation could prove

to be very beneficial and Pandora could pick up podcasts,

you know, spot on Spotify.

His experience with podcast could also be an incentive, um,

for Pandora to begin marketing and advertising podcast of their

own or making podcasts together.

So but using emerged together, both companies could increase the

number of paid subscription users, while in overall, increasing partnerships

could prove to be a plus as well.

Now there's always well will they won't they?

And what are the negatives of combining the two?

Um, more than more than anything, Pandora's users and Spotify

as users may not want Thio.

They might not like the partnership.

That's always a a worry for any company that decides

toe work with someone else.

But overall, I think the merger between the two, like

I said, would result in less competition and increase mint

when it comes to overall market value.

So thank you for listening.

Ah, I am done, and I hope you have a

wonderful

SWOT Analysis Presentation

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