Project and Portfolio II

1. A Market Analysis for Spotify
Full Sail University
Project & Portfolio II: Business and
Marketing
Taylor DePrimo
August 23, 2022

2. EXECUTIVE SUMMARY
Spotify is a power player in the music streaming industry, boasting a vast array of their content and user
features that support their massive audience. However though, the issues stemming from various issues
like their ever-revolving competitors could weaken their position as the leader in the music steaming
industry. Like with all businesses, there is always the treat that they next innovation in content
consumption could end up sending Spotify the way of the 8-tract. Spotify needs to continue to improve
and work on growing themselves to be able to continue to hold onto their market share.

3. OBJECTIVE
Based on current statistics, suggest
ways Spotify can increase their
number of subscribers and gain a
new customer outreach.
REASEARCH METHODOLOGY
The information that I gathered to use in this
report is mostly external, secondary
information sourced from the internet, and was
gathered during the month of August 2022. All
statistic information is for the current year, and
information on the owner of Spotify is sourced
from real time information.

4. RESEARCH AND
KEY FINDINGS
Spotify is a digital music streaming service
that gives you access to millions of different
songs, podcasts, and videos from artist all
over the world. Spotify is immediately
attractive to their audience because you can
access content for free. Spotify was
launched in 2008 and brought to the U.S. in
2011, by Stockholm-born Daniel Ek, who is
the cofounder and CEO of the streaming
service (Forbes, 2022)

5. RESEARCH AND KEY FINDINGS
CONTINUTED.
Spotify has become a strong force in the music
streaming industry, coming up on top with the
most subscribers against competitors like Apple
Music and Amazon Music. As of 2022 they have
188 million premium subscribers worldwide, their
subscriber base increasing dramatically in the last
few years and has more than doubled since early
2017 (Statista, 2022). Spotify has a selection of
different plans that users can subscribe to,
ranging from an individual plan, duo plan,
student plan, and a family plan (Spotify, n.d.).
Spotify operates through Premium and Ad-
Supported segments. Users who choose to use a
premium membership are provided with
unlimited online as well as offline high-quality
streaming access to music and podcasts on either
mobile devices, tablets, or computers, whereas
Ad-Supported users are provided with limited
on-demand access of music and unlimited online
access of podcasts (Forbes)

6. CONCLUSIONS
Spotify could expand and grow into a new market that would help shape the strategic trajectory, although like
with any business, the threats may hinder the business from exploiting the opportunities Spotify has for
themselves. Continuous growth and its achievement of profitable performance that reflect on the company’s
effectual efforts by bringing its financial goals into fruition. Right now, the Spotify’s focus remains on music
streaming markets like the United States and the European Union, and they have limited or barely any
presence in many developing countries. In the light of this market position and the operational expansion,
Spotify can work to establish their operations in additional markets and intensify its market penetration efforts
in their current markets. This opportunity that Spotify must grow and improve profitability, especially as
economics of scale are increased in the company’s music streaming operations.

7. RECOMMENDATIONS
Based on the research and conclusions, Spotify needs to find other sources to make them more appealing to potential customers
rather than the customers subscribing to Spotify’s competition like Apple Music and Amazon Music. Spotify can induce to diversify
their online service through new or different products. With the consideration in mind of the capability to establish, maintain, and
manage IT systems for these operations, Spotify can work to develop new products, which may involve offering other types of digital
content, or some other services that will take advantage of their worldwide base of the business. This will eventually lead to Spotify to
gain the opportunity to crease new revenue streams or increase current revenue sources, as the company continues to grow and expand
during cutthroat competition with multinational technology firms.
Another avenue that should be considered is providing exclusive content. Spotify should work on creating subscriber only
content that makes users want to use their platform more, and make it feel like they are getting more out of their app than just the
ability to stream music on the go.

8. REFERENCES
Forbes Magazine. (n.d.). Daniel Ek. Forbes. Retrieved August 27, 2022, from
https://www.forbes.com/profile/daniel-ek/?sh=5386af5f46ab
Götting, M. C. (2022, August 17). Spotify: Number of premium subscribers worldwide 2022. Statista. Retrieved
August 27, 2022, from https://www.statista.com/statistics/244995/number-of-paying-spotify-subscribers/
Spotify premium - get 3 months free. Spotify. (n.d.). Retrieved August 27, 2022, from
https://www.spotify.com/us/premium/#plans

9. IMAGES
Logo and brand assets. Spotify. (2021, October 8). Retrieved August 27, 2022, from
https://newsroom.spotify.com/media-kit/logo-and-brand-assets/
Spotify CEO Daniel Ek: Once the music industry's slayer, now its savior. The Wall Street Journal. Retrieved
August 27, 2022, from https://www.wsj.com/articles/spotify-ceo-daniel-ek-once-the-music-industrys-
slayer-now-its-savior-1522661400
Spotify revenue and Usage Statistics (2022). Business of Apps. (2022, June 30). Retrieved August 27, 2022,
from https://www.businessofapps.com/data/spotify-statistics/