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Music Service Monetization 2.0

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Nowadays, more and more we see the collaboration between the Music industry Players with other Players in other industries. It started decade ago by the collaboration with the Internet industry (such …

Nowadays, more and more we see the collaboration between the Music industry Players with other Players in other industries. It started decade ago by the collaboration with the Internet industry (such as iTunes), and then recently expanded to the collaboration with the players in the different industries.

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  • 1. Music Service Monetization 2.0“The lesson learned from strategic partnerships in media channel we see in Europe and USmarket today can be reference to others.. especially Indonesia, as one of the largest mobileinternet markets, after massive termination of premium SMS directed by regulator last year.”Service Model and can be bundled with data plan is a file sharing activities was reduced, where significant point for the Access provider 49 % of those had moved to access theThe digital music mainly has been to gain more customers, and because music streaming service. The totalsegmented into 2 types of consumption this is the “Access type” consumption revenue of the Label Record companiesmodel. Both of these models are part of model, thus it is natural for the user to increased 12%, where the revenue frombroad shift in the current digital music get access to it across different devices digital grew 84% in 2011.industry, from the analogue to the digital (“up-selling” aspect). These areconsumption, as result of developmentin the cloud service and network quality, important to stabilize or even increase The “Direct model” the ARPU by using data plan adoption This partnership can be seen as the earlyas below: over range of combinations products, model that is run in the digital music• The “Access model”, provided by expands the Access provider’s position the Streaming-core service industry, the Partnership 1.0 model. It in the supply chains, from PC, mobile is set up directly by the main players in• The “Ownership model”, provided phone, IP TV to Audio system. by the Download-core service the Music industry (Record Label/Collecting Society and/or Indeed, Access provider can compete Aggregator) and other industry fields.Although the Music download continue for customers not mainly based on theto grow to 17% worldwide, nowadays Some examples variance: low price of the offerings, but due to the a) Partnership with Access provider,we can also see the market demands to attractiveness of the bundled serviceaccessing the music is toward across e.g. TDC in Denmark, SK Telecom itself (“cross-promotional” aspect). In in South Korea, Telefonica Group inmultiple channels, platforms, and spawn contrast, in the Download-core case, theto diverse models. Thus the music alone Brazil, Telecom Italia in Italy, etc. price competitiveness is highlyshould not longer just seen as product, b) Partnership with Consumer important, and user just download thebut the experiences built around that are Electronic Provider, e.g. Nokia track then can choose to experience thethe leading to way into new era: (Nokia Music App), Sony (Sony music in offline mode and/or elsewhereinteractive, social and profitable. It is Music Unlimited in Sony PlayStation via other devices. Thus, they have fewerreported the paid-subscription to and TV), etc. bonds with the service, and loyalty withStreaming-core service has increased 65 their Access provider.% worldwide, reached total 13.4 million The “Bridge model”users. This partnership can be seen as the Partnership Model Partnership 2.0 model, the currentIn the strategic alliance point of view, Nowadays, more and more we see the model that is run in the digital musicthe Streaming-core service itself has collaboration between the Music industry. It involves the “bridge”more ability impact to the Access industry players with different industries. (Service provider) in setting up the linkprovider’s core business, compare to the It started decade ago by the between the Music industry and playersDownload-core service. This happens collaboration with the Internet industry, in different industry fields. Somebecause music is actually beyond as just and then recently expanded to the examples variance:commodity for the Access provider. collaboration with several other players, a) Partnership with Access provider,Music is inherently emotional for range from the Mobile device, e.g. Spotify with TeliaSonera inpeople, and by using the Streaming-core Consumer Electronic provider, as well Sweden and Finland, Deezer withservice; user spends more time with it as Access provider (ISP, Telecom, IP- Orange in UK and France; Muve(“stickiness” aspect). The revenue TV operator). All of these bring music Music with Cricket in US; Wimpfrom this type service is also generated closer to the consumer, become key with Telenor in Norway, and Canalvia repeatable billing cycles, so the route to the global mass-market Digital in Portugal, etcAccess provider keeps the revenue from distribution. b) Partnership with Consumerthe flow data traffic as customer Electronic Provider, e.g. Rara.comnaturally accept the bundling with The real value of music has potential as with HP in Europe market, Spotifymonthly-billed concept (“recur” game-changer for Access providers, as it with Sonos, etc.aspect). Thus, the quality of can keep them competitive in the c) Partnership with Consumer Retail,experiences, and satisfaction of the market, increase market share and e.g. Muve Music with Walmart andservice features become huge matter; ARPU, reduce churn rate. Even it is too Best Buy in US; WiMP withcreate genuine bond between customer early to conclude this type of service Platekompaniet in Norway; JUKEand the service. These are some of the would be the killer answer of the new with Media Markt in Germany, etckeys to reduce the churn rate, because revenue source that the players in thethe service turn as factor that make Internet, Music and Telco industry have In general, the Music industry actor cancustomer stay with their Access been searching for, it is theoretically see both of these models as powerfulprovider. form mutual benefit for parties involved. alternative to reduce the piracy access, Sweden can be example of the successful taking advantage over billing structureThe fact that the Streaming-core service of the recent collaboration. It was and commercial network footprint asis delivered in high-end mobile device reported that during 2009, 60% of the 1  
  • 2. “Spotify and its partnerships have several final touches..makes it different and more successful compare to other prominent competitors”digital data delivery channel from the ring tones, ring back tones, etc) is Value- Access provider, expands the valuesAccess provider. While in return, the added service (VAS), not core of the beyond the traditional boundaries of aAccess provider can use this as Access provider revenue, contributes network into wide range of areas.opportunity to make differentiation over small proportion to the annual non-tight competition in their market, as well voice revenue (globally around ~5% by The lesson learned and dynamicizationas dealing with Internet player’s data 2013). Fourth, using this model the from media channel we see in Europeanhungry Over-the-Top (OTT) services. Access provider has to directly struggle and US market today can be reference toMeanwhile, for the Service providers (in to compete with Digital retail store from others, e.g. APAC market, especiallythe “Bridge model”), which are mostly Internet players (e.g. Apple with iTunes Indonesia, as one of the largest mobilenew/small company running new type and its iPod products). It reaches global Internet, after the massive terminationof business, its tie up with big players consumer, creates trend, and puts off of premium SMS directed by regulatorwould significantly add value to gain the Access provider’s customer from last year.more customers and competitiveness their retail channel.over hundred competitors, and offers Spotifystrong bargain in dealing with giant There are several fails example of Spotify is a digital music serviceMusic industry players. “Direct model” that we can see, founded in Sweden and commercially delivered by range types of access released in 2008. Spotify business worksTDC and SK Telecom are some Access provider worldwide, e.g. Virgin Media through 2 key customer segments, theproviders that were successful in direct partnership with Universal Music User/Music listener that is divided intodelivering the “Direct model”. The data in UK, France and Australia market back several groups and the Advertiser.shows that TDC has reduce churn rate at 2009, as they were unable to secure Spotify forms this business by~50% and by November 2010 have deal with other 3 Major labels. Or, facilitating its supplier segments andrecorded 250 million downloads from its BSkyB music service fail in UK market customer segments into multi-sideDownload-core music service since even tough it had direct backing of all 4 platform.launching in 2008, YouSee PLAY. Major and various Indies record labels,Meanwhile, SK Telecom has ~ 30% due to unable to reach large enoughgrow in mobile data revenue, far ahead customer, etc Value Propositionfrom its competitors due to its Music Spotify actually does not offer new typestreaming service, MelOn. Moreover, the “Bridge model” model of business in the music industry, as theoretically has similar effect with the there are already lot of music retails andThe fundamental reason of these “Direct model” on its potential in music service providers that also havesuccesses was due their value gaining the market share, increases smart the same main offers. However, Spotifyproposition that could not match with phone up-selling with bundled data plan, and its partnerships have several finaltheir local competitors. In TDC’s case, as well as reduces the churn rate. touches apart from main offers thatits free download offer was huge However, it more makes sense for the make it different and more successfulattractive to Danish market as result of Access provider to use this model, compare to other prominentsuccessful setting up agreement with instead of creating their own (the competitors. Using its platform andall Major record labels and Danish “Direct model”), as it offers the strategic alliances with players in theIndies. While in SK Telecom’s case, the opportunity to the similarly compelling range of industry, Spotify combines thefact that it has subsidiary company that the service, but with opportunity to gain excellence of seamless streamingis the largest Record Label in South it quickly and in simpler way, as well as experience, music catalogue size, socialKorea (Loen Entertainment), at reasonable cost. By using this music feature, service availability insignificantly remove the agreement partnership model, the Access provider several devices, product bundling,complexity with Music industry players can significantly shares the effort on customer and developer community,and reduce cost to simultaneously marketing and branding cost, as well as etc.operate the service with appropriate saves time on delivering the service toupdate contents. the market. Unlike iTunes and other music services that forms the business based onHowever, there are prohibitive up-front This kind of partnership gives the Download-core, Spotify does not justcosts and significant complexities that Access provider an already established sell product (music retail selling unit),prevent others to follow, as these and well-known music platform that but also provides service (on-demandsuccess factors above are not easy to be crucially has had existing deals with the and radio streaming), and as local player.replicated. First, there are huge efforts Major record labels, compare to the fail Spotify closely resembles the Radiohas to put in releasing the music in the using the “Direct model” that have been model, iTunes model as well as theproduct that has enough affordability, faced by some of the Access providers original Napster model, by recognizesquality, constant content, etc. Second, worldwide. While in return, the Service the validity of copyright and conducts itsthere is significant time and cost provider can expand its customer base business accordingly. Apart from those,consuming for the marketing, branding, very efficiently. Indeed, partnering with Spotify provides access to both theand high complication in setting up the well-known and right Service major record labels and unknownagreement with the Music industry. provider would bring extraordinary Artists, whom are not yet commerciallyThird, the music as whole (including impacts on the core business of the viable (Indies), by maintaining2  
  • 3. “Spotify works differently compare to other similar services as it relies on severalway, makse the music delivered seamlessly to client”searchable presence from its catalogue,covers 15 million licensed music(globally, size and availability varies ineach country). From those aspectsabove, Spotify able to build 2 keyresources: • The music delivery as intellectual property using “Value mix” model (music as product and music as service), • The information it has about it users, used for specific target on marketing purposes.  Convergence of the service across rangeof devices is one of major themes indigital music business. It Spotify isdelivered as downloaded clientapplication with proprietary protocol,makes it has much control over thenetwork protocol as opposed to servicedevelop as web-based. The application isbuilt in several platforms, makes itavailable in range of devices: theDesktop clients (Windows, OS X,Linux), mobile devices (Android, iOS,Palm, Symbian, Windows Mobile,Blackberry, WebOS) and consumerelectronics (iPod products, homestereos). Spotify has device integrationfeature between these devices, so usercan manage and sync all the musiccontained in the Spotify play liststo/from iPod, mobile and tablet devices(iPad), and access those “cloud tracks”offline, as well as doing downloadpurchase through several bundleoptions. uses TCP-based communication that development and maintenance. TheseMoreover, for the audio bit rate, Spotify guarantee each bit of media stream is costs are funded trough several streams,uses different rates of OggVorbis, the correctly delivered. However, TCP is as below:Variable-bit rate (VBR) audio accomplished with timeout and retriescompression format that is unpatented, mechanism. Thus, Spotify is 1. Streaming subscriptionmake it a well-suited replacement for implemented using peer-assisted Since its commercial launching in 2008,proprietary audio formats. The standard streaming per track (P2P), not per Spotify has made several price schemerate used in the desktop is ~ 160 kbps torrent as used in BitTorrent (only changes; with the last was November(OggVorbis q5), and in the mobile implemented in desktop version). It uses 2010. It only offers 3 tiers for itsdevice is ~96 kbps (OggVorbis q3). 3 data sources combination: the Streaming service since then, as shownSpotify offers feature to its Premium CDN/core streaming servers, P2P and in Table 1. User that has signed beforeusers to access limited tracks with higher cache, where 8.8% data comes from November 1, 2010 is allowed playquality in their desktop up to ~320 kbps servers, 35.8% from P2P, 55.4% from maximum 10-hour monthly with 5 times(OggVorbis q9) and up to ~160 kbps in user local caches. Using this, Spotify / track, and new user was exempt fromthe mobile device (~320 kbps for recommends 256 kbps bandwidth and these changes for the first 6 months.Premium user using iOS device). some caching space. Spotify recently confirm that it has plan to launch premium family plan, whichSpotify works differently compare to Revenue Model is incentive offering for more membersother similar services as it relies on Spotify’s cost structure are mainly to of the same household to get access onseveral way, makes the music delivered address the Copyright usages of its multiple basis and to prevent passwordseamlessly to the client (median music delivery to the Music Industry sharing among them.playback latency ~265 ms). Spotify players, apart from software 3  
  • 4. “This makes Spotify as largest paid-based subscribers worldwide, the second largest source of digital music revenue in Europe.” 2. Download purchase build based on 2 prising models: boost Spotify paid-subscriptions user, asSpotify also build its own music store • The “Freemium Subscription” shown in Graph 1, and also revenue.with bulk discounts, as shown in Table model, which is implemented to The success factor of this conversion2. Its platform in range of devices allows subscription bundles: the “Advertising- rate is clearly mainly supported by theuser to synch their music collection, so support” (“Spotify Free”) and features differentiation arrangement thatthey can enjoy it in several devices using “premium” bundles (“Spotify Spotify put in its bundling subscriptionsame account. Unlimited” and “Spotify Premium”) (mobile version, max time-access limit, • The “Pay-as-you-go” model, which max similar-track limit, offline access, 3. Advertisement is implemented to its download feature etc).Spotify offers free subscription plan Spotify implement these pricing models(“Spotify Free”) that is supported based using the “Demand-based pricing” Based on its pricing scheme and itson audio and graphic advertisement strategy, where it adjust the price subscriber based above, this revenue is(banners, page takeovers, etc) and sets between countries, follows the perceived analyzed to come ~ 23 % frompartnership with several brands, e.g. value as the central element to set the adverting-supported users and ~ 77 %Coca-Cola, Chevrolet, Motorola, price. from paid-subscriptions users (mainlyReebok, The Daily, etc. Using the “Spotify Premium”), as shown in Graphinformation that it has about its user e.g. Even tough the exact Spotify annual 2. It is reported that Spotify annualdemographics, location, music genre revenue comes from these streams is not revenue during 2008 to 2010 waspreference, etc), Spotify able to deliver reported clearly, the 20% conversion boosted from ~ $380 thousand to ~ $63this advertisement in specific targeting rate is far away compare to other million, with total loss ~ $316 thousandpinpoints, detail tracking and reporting. Internet players, and impressive to to ~ $26 million, mainly to cover the secure cash flow in long run. The licence payment to the Music industryFrom the discussions above, it can be introducing of mobile device feature was players.conclude Spotify revenue streams are one of key factors that significantly Market Segment The expansion strategies that Spotify resembles are mainly targeted to the early adopter user, which potentially drives more benefits in long-term engagement. Spotify use geographic segmentation, as same as what Facebook did in its early years. Its first commercial launching was in Sweden, and since then it has been available other 13 countries across the globe (Spain, UK, France, Netherlands, US, Denmark, Faroe Islands, Austria, Belgium, Switzerland, Germany). Spotify also has variation offer in some market, e.g. the implementation of “Private beta” launching model for unknown period of time. User only can get access to the “Spotify Free” with invitation, but keeps the paid-subscriptions opens. Spotify keeps changing the offers it puts to its bundling tiers, which also might be different in several countries, e.g. radio service available for Free-based users in US, or no 5-track cap for Free-based users in several European countries. All of these strategies are not just mainly due to copyright settlement with the Music industry players that work differently between countries, but also to help on making the product exclusive and attractive to its early adopter users. It happens, as they are exposed to the service, but unable and/or has limited access on using it for period of time.4  
  • 5. “Spotify has strategic alliances in other industries,builds channels to deliver its service closer to user.” Spotify reports to currently have total users able to purchase several months 5. Partnership with Access10 million registered users (3 million are subscription of “Spotify Premium” plan providerusing paid-subscriptions/ 15 % in retail stores in the Nordic countries Apart from strategic alliance mentionedconversion rate). This makes Spotify as e.g. Pressbyrån, 7-Eleven, Narvesen, above, Spotify also set up partnershipthe Streaming-core music provider with ICA, Rimi, and Coop, just like toping-up with several access providers, both thethe largest paid-based subscribers mobile or buy train ticket, and Service Provider (ISP) and MNO.worldwide, as well as the second largest introduces the “Gift card” concept. Spotify started its first agreement withsource of digital music revenue in TeliaSonera in Sweden and Finland. ItEurope. 3. Consumer Electronic Industry then also broad this in November 2009 Spotify key activities also to develop its with Hutchison Whampoa (3UK)Value Network and platform to range of products, extends using tariff with inclusive “Spotify its capabilities and values. Apart from Premium” subscription bundled withCompetitive Strategy   availability in the computer desktop and 3UK’s first Android handset, HTCIn order to legalize its business, Spotify mobile phone, Spotify widen its service Hero. The offer comes with £35/monthmainly deal with players in the Music to other devices, mainly home stereo over 24 months contract, plus upfrontIndustry. Apart from that, it also has (require user to have ‘Spotify Premium” fee £99 for the mobile phone, where thestrategic alliances in other industries, plan). It is partnering with several package includes: Unlimited “Spotifybuilds channels to deliver its service Players in this industry, e.g. Oknyo, Premium” for mobile and PC during thecloser to user. Sonos, Logitech, Western Digital, Boxee, contract period (worth £240), 750 and Phillips. minutes to other mobiles, unlimited1. Music Industry texts and 3-to-3 calls, unlimited internetSpotify opens its service channel not just access, and free Skype-to–Skype call. 4. Internet Industryfor Major labels, but also for Spotify partnership with Internetindependent/Self-published Artist Spotify also launched another industry range with other proprietary(individual or unsigned), and small labels partnership in that region, with Virgin service providers. This offer is inlinethat do not have delivery partner or Media in 2011, for broadband, mobile with vision to be the “OS of the music”,platform. They can make deliveries and set-top box IP TV users, where the by making it available in range ofthrough several Aggregators or offers are only available for new or re- devices, as platform of embeddedCollecting societies that already have an contracting customer. Following the applications. This means it allows thirdagreement with Spotify. expiry of the free offer period (6 months parties to create discovery application based on collection of music, images and at no data charge for fixed broadbandThus, it can be conclude that basically customer, and 3 months for mobile), video, integrated with its platform.Spotify mainly deals with Record label, Virgin Media’s customers can continue However, there is currently no way forMusic publisher, Collecting society, subscription to several Spotify’s services these third parties to monetize thisand/or Aggregator, not with the Artist. through Virgin Media’s network. channel.There is no clear statement on how thefinancial arrangements work, as it is set During the same period at that year, Spotify also built social feature inup with the Non Disclosure Agreement Spotify sign agreement with KPN, the cooperation with Facebook, using the(NDA). But the payment is basically Dutch’s incumbent. The agreement “Open Graph”, that bridges betweencalculated based on function of total allows KPN to offer Spotify Premium Facebook’s platform with other third-number of streams and revenue of that bundled to its top-tier triple play party services. This is actually significantparticular month, result the payout per broadband customer that connected moving point where the music industrystream. When the total stream grows with Extra or Premium (copper DSL) becomes closer to the social network,more than the total revenue, the and Silver or Gold (FTTH) package, after MySpace made music as socialpayment per stream might be less. Thus, €55/month. entertainment. Using this, Spotify userthere is no fix price in Spotify system, can automatically share and discoverdifference with “iTunes” model, andsome of the deals might have discount music each other in the Facebook page, event if they use different Service Spotify-TeliaSoneraarrangements. providers that interact with Facebook Partnership different way. This partnership boosts TeliaSonera is a merger company2. Retail and Online Payment Spotify user, as it was reported, Spotify between Swedish incumbent, Telia and Industry generates ~ 83 thousands new Finish incumbent, Sonera at 2002.In order to leverage its availability, users/day since Facebook f8 TeliaSonera telecom services operationSpotify launched partnership with Paypal conference. While in Facebook point of are splinted into 3 business areasfor user in UK, broad its online payment view, this partnership would potentially (Mobility Services, Broadband Services,channels. It then set partnership with make their user increase amount of time and Eurasia), and operates in range ofother players in the retail business, they spend in its environment, countries in Nordic, Baltic, and Eurasiamakes its payment models expanded not supporting its ads-core business. region (Azerbaijan, Denmark, Estonia,just using online payments, but also cash Finland, Georgia, Kazakhstan, Latvia,payment. Since September 2009, Spotify 5  
  • 6. “Spotify subscriptions increased by ~ 300 %, acquired ~ 25 % Premium subscription, and TeliaSonera also cited this as one of 3 reasons of its strong performance.“Lithuania, Moldova, Nepal, Norway, Second, the data connection used competition both in Sweden in FinlandRussia, Spain, Sweden, Tajikistan, during the streaming is counted toward pushes the price and ARPU down. InTurkey and Uzbekistan.). It is now the the bucket consumption billing. the Nordic market itself, TeliaSonera5th largest telecom company in Europe However, once the customer reached main competitor also has launched theby revenue and customer based. over the limit, it still can get access to similar service, which is Telenor andTeliaSonera Net sales amounted to SEK Spotify streaming service and other WiMP partnership, started in Norway~ 105 million, where the market share of OTT services (Speed Throttling). and went toward Sweden. Using thisits business areas are 49%, 35%, 16% TeliaSonera implements the “Volume- agreement, TeliaSonera has built at leastrespectively, with 170 million total based” data plans (caped based on 3 Strategic objectives: opportunity tosubscribers by Q4 2011. bandwidth volume) and does not do reduce the churn rate, up-selling packet inspection to differentiate subscription to higher value packages,In Sweden, TeliaSonera operates under Spotify’s traffic with other OTT’s. and increasing ARPU. In Spotify side,Telia, Halebop, Skanova Access and this partnership significantly increases itsCygate brand. In the country with 9.4 Values Exchange customer base, and more importantlymillion populations, the mobile There is no exact addressable market drives these customers directly topenetration has reached 139%, followed mentioned in the campaign marketing of higher-value based subscriptionby fixed telephony 54%, and Broadband the alliance. However, it is clear that this (“Spotify premium”), which is still the32%. TeliaSonera serves mobile partnership strengthen both TeliaSonera core business among Spotify Revenuecommunications, broadband, fixed voice and Spotify brand by associating each streams.(incl. VoIP) and data communication other, as the offer opens possibility toservices and claims to occupy as the first both parties to expand their market and Moreover, at the time when thein the market position except for data tight the bond with their customer. agreement was launched, Spotify wascommunication, 4th position. Moreover, Spotify type of service mostly suit the still young brand and small marketTeliaSonera operates under Sonera, Tele young customer, means this offers will segment. Partnering with incumbentFinland, Data Info and Cygate brand in have strong attraction to the first-time would definitely leverage its position,Finland. This country has 5.4 million broadband and TV subscribers. And as helping toward bargaining with thepopulations, with mobile penetration has same as several other Network Music industry players, who are takingreached 142%, followed by fixed operators, TeliaSonera previously has its control over the business ecosystem.telephony 48%, Broadband 39%. own music service, “Telia During the first term of agreement,TeliaSonera claims to occupy as the Musikbutiken”, but failed to unlock the Spotify subscriptions throughsecond in this market, except for data Music business through its telecom TeliaSonera has increased by ~ 300 %,communication, 3rd position. ecosystem business. Even tough the acquired up to ~ 25 % of “Spotify Revenue sharing model is not officially Premium” in Sweden, and TeliaSoneraStrategic Alliance Model announced to the public, it is confirmed also cited this partnership as one of 3Spotify started its 2-years exclusive TeliaSonera takes some part of the slice key reasons of its strong performance atagreement with TeliaSonera in 2009, and leaves there rest to Spotify to be that year. It is reported, TeliaSonera atwhich makes TeliaSonera as sole splinted with the Music industry. So least got direct revenue benefit ~ €77exclusive operator in Sweden to use basically, there is no direct arrangement billion during its first year partnershipSpotify within its products branding and between TeliaSonera and the Music with Spotify (signing up new users; upmarketing. They boarded it to Finnish industry (as how the “Bridge model” selling data plans in smart phonemarket in 2010, and then renewed it in works). Although it is confirmed that bundling, and revenue saved from2011 for the next 2-years forward. The TeliaSonera also involve in bargaining decreased churn).partnership enables “Spotify Premium” discussions to help on releasing theplan to be bundled with TeliaSonera’s product to the market under the Authormobile, broadband, and IP TV service. agreement model. TeliaSonera able to LAILI AIDI is masterThe access to IPTV Set-Top-Box’s was offer the free “Spotify premium” access student at KTH,activated in June 2010. during early months promotion with no currently doing final “Hard cap” policy, as there is also thesis research atSpotify bundling in TeliaSonera specific discount arrangement exist. Ericsson, titleproducts has more attractiveness for the This is the offer that other Access ”Business Models for Mobile-user rather than if they access it trough providers could not afford and they are broadband Media Services-Case Studyother Access provider due to several not allowed to use any Spotify brand Indonesia Telecom Market”. Thereasons. First, TeliaSonera offers free included in their own packages. research is under supervision of Janaccess for “Spotify premium” plan up to TeliaSonera has to made step toward Markendahl at Wireless@KTH and6 months in several packages of mobile differentiation among prominent Greger Blennerud at Ericssonphone contract. Customer under that competitors in broadband and especially Business Unit Networks. Thiscontract also gets access to “Spotify in the IP TV product, as its position in manuscript is shortening version frompremium” using the same account in these markets is not as strong as in some of the preliminary findings andbroadband connection and IP TV. Mobile product and the significant analisys. (aidi@kth.se / laili.aidi@ericsson.com)6