Spotify‘Music for everyone’

Alison Fosteralifost

Products Spotify Premium vs.

Spotify Free Spotify Family Features:

Spotify Running Spotify PlayStation

Financial Info

Freemium Model Primary Profit:

Streaming subscriptions▪ $1.08 billion (2014)

Advertising placements▪ $108.07 million (2014)

Costs: Spotify pays 70% to rights holders Per-play payout range = $.006 - $.0084 Paid $973.1 million on royalties and distribution (2014)

Losses: Operating Loss = $187 million (2014)

Raised: $400 million in investment

History of the Company – Part 1

Founded by Daniel Ek & Martin Lorzenton

2006: Developed by a team in Stockholm, Sweden

2007: Released its first public beta 2008: Official launch of Spotify 2009: Announced security flaw 2010: Sean Parker is recruited to

assist

History of the Company – Part 2 2011: Finally launches in the US 2012: 4 million paid subscribers 2013: Launched in App, Google

Play, & Windows Phone Stores 2014: Swift removes music from

Spotify 2015: Partnership with Sony

Swift vs. Spotify

What’s Hot

Cheap subscription for all-access pass to any music you want ~ 30 million tracks Premium, Free, Family

New features and integration PlayStation Music Spotify Running Social Media integration

Acts like an Internet radio service while allowing users to sample complete catalogue

Artificial music intelligence through data analysis

Service gives the impression that the music is already on your hard drive

Secret Sauce

Competition Streaming

Services: Apple Music Google Play

Music Tidal Rhapsody

Radio: Pandora

Social Network: SoundCloud 8Tracks

Spotify’s uncertain future

Artist’s grow angry and follow T-Swift’s suit Business model for streaming music is inherently unprofitable