Company report on Spotify for EECS 441

1. By JAKE REES
EECS 441SPOTIFY

2. PRODUCTS
• “Freemium” Service
• Curated playlists, music recommendations, and radio
• 40 million paid subscribers, 100 million active users

3. ¡ Annual Revenue:
$2.18 Billion in
2015
¡ Net Income: loss
of $194 million
¡ Valued at: $8
Billion
FINANCIALS
Financials (in Thousands of Euros)

4. ¡ 37% market
share for
streaming
services
¡ Royalties to
Major Labels
¡ IPO in 2017???
FINANCIALS
Financials (in Thousands of Euros)

5. FINANCIALS

6. ¡ Paid Subscriptions
¡ Third Party Advertisements - $110 million in 2014 to $220
million in 2015
BUSINESS MODEL

7. ¡ Founded in Sweden in
2006
¡ First launched in 2008,
available in UK in 2009
¡ Launched in USA in
2011
HISTORY
Martin Lorentzon and Daniel Ek,
Founders

8. ¡ Tried several different
subscription models
¡ Raised millions of
dollars in funding
($500 million in Jan.
2016)
¡ Plans to go public in
2017
HISTORY
Martin Lorentzon and Daniel Ek,
Founders

9. WHAT’S HOT???
525 Million Streams
31.3 Million Monthly
Listeners
Holdouts?

10. SECRET SAUCE
Discover Weekly
Easy to use, Social
Free Option

11. COMPETITION
• 30 million songs
• Free and Paid options
• Weekly discovery
playlists and curated
playlists
• Social Media
integration
• Intuitive interface
• 30 million songs
• Free trial, but only paid
option
• Exclusives- Drake,
Radiohead, Frank
Ocean, Taylor Swift
• Suggestions based on
user tastes
• “Unintuitive” interface
• 25 million songs
• Free trial, but only
paid option
• $19.99/month high
quality option
• Exclusives – Kanye
West, Beyonce
• Higher artist royalites

12. ¡ Cut unnecessary costs after IPO
¡ Subscriptions + Advertisers = GROWING
¡ Will beat out TIDAL, sustainably compete with Apple Music
PREDICTION? IT WILL SUCCEED!