Spotify Now! plays the music you love matching your activities. It is aimed to mainstream music listeners, busy professionals and sports practitioners. This is the final project of the Product Management course at Product School San Francisco

1. Product School Final Project
By Marcel Patrick Shimabukuro
Spotify Now!
(The Soundtrack of Your Life)

2. Spotify’s Business Goals
How can Spotify make more money???

3. Spotify’s Business Goals
30%
70% 70%
30%
Non-paying Users
(117M)
Paying
Users
(50M)
User base
Royalties
Op. Expenses
Revenue Distribution
Net Losses = 1.2 B.EUR (YE 2017)
http://hackingrevenue.com/revenue/how-spotify-make-money/
https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm#rom494294_6
Convert non-paying users (70% of its base) into paying users.

4. Personas
What type of user to target ???

5. 425
145
76
17
3.3
Global hit
Spotify's Top 10
Indie
Classic Rock
Niche indie
Personas
http://hackingrevenue.com/revenue/how-spotify-make-money/
Royalties per type of album
(KUSD/month)
The bulk of the music streamed
is mainstream music. Listened
by the Mainstream User.
Larger user base
Higher $ potential
=
Target User

6. Personas
This is Jake
(mainstream listener)
What Jake cares about?
• Being up to date with the latest
hits
• Listening to the artists he likes
(mainstream music)
• Exercising, working out
Jake’s problems:
• Listens to radio but he cannot pick
the songs that match his mood.
• Thinks streaming is too expensive.
• Doesn’t like to spend time making
playlists or discovering music.
• Streaming has too many
underground artists he doesn’t care
about.

7. Personas
How can Spotify add generate more value and convert
mainstream listeners to paying users?

8. The Feature
Play songs people like > Matching their activities
Spotify Now!

9. How it works?
1- Will filter the songs you already
like (your playlists) and tag them
by mood.
2- Pair with smartphone and
wearable to get your current
activity.
3- Based on this data, will play
the right music at the right
moment.

10. How it works?
Time and Daylight
Location
Moving speed
Body movements
Energy expenditure
Body temperature*
Heart rate*
Stress level*
https://qz.com/467145/the-next-wave-of-fitness-wearables-will-send-data-directly-to-doctors/ * Only for fitness wearables
7:00 am
24hr Fitness
7 mph
Constant up and down
Normal
98
120 bpm
Low
Jake is on the
treadmill !

11. How it works?
https://qz.com/467145/the-next-wave-of-fitness-wearables-will-send-data-directly-to-doctors/
Jake is
commuting back
home after a long
day of work !
* Only for fitness wearables
Time and Daylight
Location
Moving speed
Body movements
Energy expenditure
Body temperature*
Heart rate*
Stress level*
8:00 pm
Montgomery Station
0 mph
Still
Low
97
80 bpm
High

12. MVP and Validation
1 Selected songs from people’s playlists and
divided them into fast beat and chilled vibe.
2 Sent them back their curated playlists and
asked them to listen to the songs
according to their current activities:
Fast songs During workout
Chilled songs When relaxing

13. MVP and Validation: Results
People liked that songs matched their activities!
“The songs were adequate to
the moment. It seems more
fun to do the activities
listening to them. It cheers me
up!”
“I liked the experience of
listening to it while working
out. It was very
stimulating.”
“Regarding the slow songs I
could really relax while
listening. It gave me peace and
made me connect with my
feelings. ”

14. Two subscription options:
Spotify Now! (basic)
US$ 4.99 / month
Spotify Now! feature. Access only to
top charts playlists from their region
Spotify Premium
US$ 9.99 / month
Spotify Now! feature + access to
the entire Spotify music library
Targeting the
mainstream
listener

15. Mock-ups:
Spotify Now! BasicPremium
Button on/off
Spotify Now!

16. Success Metrics
• # New Premium / Basic accountsAcquisition
Conversion
Engagement
Satisfaction
• # Free to Premium / Basic
• Days per month opened Spotify
• Time listening to Now! feature
without skipping

17. Spotify Now!
(The Soundtrack of Your Life)
Thank you !!!