Spotify Business Model Analysis

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Class project for MVMC 2013 Masters

Class project for MVMC 2013 Masters

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  • 1. WorkGroup A.2
  • 2. Overview
  • 3. ChallengesLong tail sharing, nicheFREEAccess wifi, data, satelliteDevices desktop, mobile, autoAd serversIdentity community, brandRoyaltiesLegislationDisruptive technology
  • 4. Customers
  • 5. Customers
  • 6. CustomersIf you’re a music fan and listen to Spotify two hours each day:• Each day you listen to about 30 songs• Each day you distribute over $0.13 to artists• Each year you listen to about 10,950 songs• Each year you distribute over $49 to artistsIf you played music on Spotify 24/7 for the whole year, you’d play about 131,400 songs
  • 7. New Players More futures than spotify such as play history, top chart, recommended music, easy to sync music into the playlist to the apps, comprehensive website.Good queue management, easy to add songs into the playing queue,as well recording, good music library similar to Spotify, easy futurewhen you want to listen to a specific kind of music. Rhapsody helpsin deciding what song you want to listen to. Create an account and listen to the music of your choice, paid account option, good track of the songs, read lyrics, track activities, sharing on Twitter and Facebook, make friends, good song recommendation, attractive, & mobile apps. Social Networking, favorite songs, integrated flash player, free online internet radio, makes recommendations, easy interface, the songs, albums, popular list.
  • 8. The Breakdown Spotify Rdio Rhapsody Pandora GrooveSharkUsers Over 20 million active users Not Published Not Published 54.9 million users 35 million users 5 million active subscribers paying each monthPrice Free (ad supported unlimited) Free (no ads), web ($4.99/month) Premier No ads Subscribers 3$/month ($4.99/month) To unlimited (9.99/month) $3.99/month Premium ($9.99/month) Premier plus ($9.99/month) ($14.99/month)Free limit 10 hours/month Limited per month 15-30 days free trail None(version) unlimited up to 6 monthsAvailable in countries 17 countries 17 countries USA USA, New Zealand, Australia (Australia, Austria, Belgium, (Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Denmark, Estonia, Finland, France, Germany, Ireland, Luxembourg, Germany, Netherlands, New New Zealand, Norway, Spain, Zealand, Norway, Portugal, Spain, Sweden, Switzerland, The Sweden, UK, USA) Netherlands, UK, USA)Custom Playlist YES YES YES YES YESFuture syncing with mobile devices, history, top chart, recommended good queue management, easy to Facebook Applications, Songs, Albums, facebook, Catalog, playlist, last.fm music, easy to sync music into the add songs into the playing queue, Windows Vista, Playing in Twitter, google integration, radio, Social media playlist to the apps, comprehensive recording, good music library vechicles integration: Facebook, twitter, website, Music discovery similar to Spotify, easy future Applications, Spotify uses this when you want to listen to a integration to learn which songs specific kind of music Rhapsody you like best helps in deciding what song you Sound quality want to listen to.Languages Over 50 languages English Over 30 LanguagesTracks 20 millions tracks 18 million tracks 16 million tracks 800,000 tracks from 80,000 15 million songs artistListen offline With premium subscription Unlimited subscription With premium subscription No NoSmart phone Blackberry devices Iphone/Ipod Iphone/Ipod Blackberry Blackberry Iphone/Ipad Android phones Android phones Android Iphone Android phones Blackberry Blackberry devices Windows mobile Android Windows Mobile 6x Windows 7 Iphone Palm NokiaRevenue $240,000,000
  • 9. The Future is . . . e x p a n d i n g! World&wide&Music&Industry&Revenue&80$ 36.5$70$ 36$60$ 35.5$50$40$ 35$30$ 34.5$20$ 34$10$ 0$ 33.5$ 2006$ 2007$ 2008$ 2009$ 2010$ 2011$ $Concert$Revenue$ Music$Industry$Revenues$ Recorded$Music$Revenues$
  • 10. . . . and restructuring! ArtistsThe old way . . . $ Label $ $ Promotion Platform $ Listener
  • 11. Label $ $ $ $Listener Artists
  • 12. Future Increase of ... Consumption of Live & HQP Creative FreedomSocial × Sharing
  • 13. Increase of music consumption! January 28 12:00(CET) January 28 12:00(CET) January 28 12:00(CET) January 28 12:00(CET) January 28 12:00(CET) January 28 12:00(CET)
  • 14. EXP × HQP
  • 15. LabelMedia Concerts & High Quality Products... Listener
  • 16. Creative Freedom!
  • 17. FutureSocial × Sharing ×Marketing○Good Music Creation Free
  • 18. Beyond...
  • 19. Revolution of theMusic Industry
  • 20. X