EECS 441 Company Presentation

1. Spotify
By Jacob Byrnes
Uniqname: byrnesj

2. Problem
1) Stealing music is
easier than buying it
2) Most listeners
don’t know what to
listen to

3. Product: The Music Streaming Service

4. Sub-Products: “Let’s Listen”
-Only Desktop
Discover
Weekly
Recommendations Listen on Multiple Devices
Desktop App + Mobile

5. Financial Info:
• Private Company
• Valued ~$21.5
Billion
• Larger Market
Cap than
Snapchat on
their IPO
• Growing by
Expected 40%

6. Financial Info:
NOT PROFITABLE!
• Yet...
** General and Admin Costs
include royalties paid to
Labels for hosting their
music.
- This continues
to grow as subs.

8. Business Model: Subscription > Ad Revenue

9. Competition:
Highlights:
• It is THE Mover & Shaker in Music Streaming
• Closest Competitor, Apple, has half the
Number of subscribers
• “Lets Listen”, a feature via. Facebook
partnership, is exclusive to Spotify
• Allows users to see what their friends are
listening to
• While Amazon and Apple have hardware,
Spotify is relying solely on their software

10. Secret Sauce:
1. “Lets Listen”
2. Discover
Weekly
3. Concerts

11. Ethical Concerns with the Business of
Spotify:
Artist Payouts:
• No set payout strategy per stream for artists
• Artists can be put on Brand curated playlists without
their permission or even their awareness.
• No Payment for this promotion
Promotional Issues:
• Major Labels pay their artists way into promotional
playlists
• Doesn’t make curation or discovery completely
transparent or natural
• Independent Artists can’t compete against the Big
Labels

12. Will Spotify last?
Prediction: Yes
1. Winning the Streaming
war
2. Reputation with Labels
as THE service to plug
artists
3. Better Features
4. Profits expected to turn
postive

13. Thank you!
Questions?

14. References:
• https://pdfs.semanticscholar.org/e745/027e21705c9219dd1272297a082c5270
c9c8.pdf
• https://thebaffler.com/salvos/the-problem-with-muzak-pelly
• https://www.youtube.com/watch?v=W-KXSXAswuk
• https://consequenceofsound.net/2018/01/what-the-spotify-ipo-means-for-
the-future-of-music/
• https://en.wikipedia.org/wiki/Spotify#History
• https://www.statista.com/chart/4894/spotify-revenue-vs-costs/
• https://www.musicbusinessworldwide.com/spotify-is-set-to-end-2017-with-
70m-subscribers-and-5bn-in-revenue-but-how-much-money-will-it-lose/
• https://support.spotify.com/us/account_payment_help/subscription_informa
tion/subscription-levels/
• https://www.cnet.com/how-to/best-music-streaming-service/
• https://en.wikipedia.org/wiki/Spotify
• https://www.bloomberg.com/technology
• https://sharespost.com/insights/blog/spotify-financials-the-numbers-behind-
a-21-billion-ipo/
• https://www.cnbc.com/2017/10/12/report-on-spotify-earnings-h1-2017-
revenue-loss-margins-growth.html