Spotify – how it all
                   started

             DevCon 2010

              Andreas Ehn
               ehn@a8...
Spotify


 All the world’s music anywhere, anytime
 Online music streaming
 Better than piracy
Background

Founded spring 2006 by Daniel Ek and Martin
Lorentzon
Got going August 2006 with a small tech team mostly
from...
About 20 people by summer 2008
First external financing round in summer 2008:
Northzone and Creandum
Launched publicly in O...
August 2008
Second external financing round in summer 2009:
Wellington and Horizons
Mobile apps released in fall 2009 (first iPhone and
...
Almost 10 million users in seven markets
9.5 million songs
Offices in Stockholm, Oslo, London, New York, Paris,
Madrid, Ams...
The challenge

Music is ubiquitous and in practice essentially free on
the Internet
The music industry’s response – DRM an...
The opportunity

Despite music’s being free, the user experience was
bad
Accessing music from different places and devices...
The solution

 Move from a distribution model based on ownership to
 one based on access
 Make it ubiquitous
 Make it free...
Scalable backend
                                           P2P
                  Internet


                       client...
Instant playback
Efficient distribution
Conclusions

Fighting what users want is a losing game
“Don’t bet against the Internet” – Google’s CEO Eric
Schmidt
Identi...
Thanks!

Andreas Ehn <ehn@a8n.se>
Twitter: @ehn
CC0 and in the public domain to the extent possible
(photos, screen shots,...
Spotify – how it all started
Spotify – how it all started
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Spotify – how it all started

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Background to the Spotify success story

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  • Spotify – how it all started

    1. 1. Spotify – how it all started DevCon 2010 Andreas Ehn ehn@a8n.se Twitter: @ehn CC0 and in the public domain to the extent possible
    2. 2. Spotify All the world’s music anywhere, anytime Online music streaming Better than piracy
    3. 3. Background Founded spring 2006 by Daniel Ek and Martin Lorentzon Got going August 2006 with a small tech team mostly from KTH, six people in total Launched private beta for friends and family in May 2007
    4. 4. About 20 people by summer 2008 First external financing round in summer 2008: Northzone and Creandum Launched publicly in October 2008 About 40 people at launch
    5. 5. August 2008
    6. 6. Second external financing round in summer 2009: Wellington and Horizons Mobile apps released in fall 2009 (first iPhone and Android, then S60)
    7. 7. Almost 10 million users in seven markets 9.5 million songs Offices in Stockholm, Oslo, London, New York, Paris, Madrid, Amsterdam About 220 people in the company
    8. 8. The challenge Music is ubiquitous and in practice essentially free on the Internet The music industry’s response – DRM and lawsuits – alienates customers and causes more problems for legitimate users than pirates
    9. 9. The opportunity Despite music’s being free, the user experience was bad Accessing music from different places and devices was cumbersome User’s should be willing to pay – with their attention or their wallet – for something better
    10. 10. The solution Move from a distribution model based on ownership to one based on access Make it ubiquitous Make it free or significantly better than free alternative to create an incentive to pay
    11. 11. Scalable backend P2P Internet client client client Spotify protocol access access point point Spotify backend mostly HTTP user user tracker search storage service state selection of backend services (some are independent; other have interdependencies)
    12. 12. Instant playback
    13. 13. Efficient distribution
    14. 14. Conclusions Fighting what users want is a losing game “Don’t bet against the Internet” – Google’s CEO Eric Schmidt Identify what’s bad about the current user experience and figure out how to improve it – without losing the good parts Spend your marketing dollars on product development
    15. 15. Thanks! Andreas Ehn <ehn@a8n.se> Twitter: @ehn CC0 and in the public domain to the extent possible (photos, screen shots, trademarks and logos owned by Spotify of course)
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