Elora Tocci Spotify

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Elora Tocci Spotify

  1. 1. What is Spotify?• Brainchild of Swedish entrepreneur Daniel Ek – debuted in Europe• Introduced in the United States on July 14, 2011• Music streaming service that allows users to play songs instantly from a library ofover 2 million songs stored on European servers• Goal is to deliver 95% of all streams within 200 milliseconds because that’s how longit takes the brain to process a delay• Sees iTunes as its biggest competitor
  2. 2. Levels of access• Users can access Spotify for an initial 6 months without any limitations except ads• After 6 months, users can still stream for free, but can only play a song a max of 5 times• Upgrade to $4.99/month to eliminate ads• Upgrade to premium at $9.99/month to eliminate ads and give access from any mobile device• Range of apps for different devices available and in development – some, including the Blackberry app, feature a storage function to allow users to access music offline
  3. 3. Socialized music• On September 22, Spotify officially partnered with Facebook• To sign up with Spotify, users had to connect the service to their FB accounts• Made the service a truly social site – can view playlists and favorites of all your FB friends, make recommendations, share newly discovered artists• Sean Parker, founder of now-defunct Napster, says Spotify is the first streaming service to pick up where Napster left off and make music a truly social, shared experience
  4. 4. Socialized music cont’d• Like Netflix debacle, some people were angry when Spotify required new users to sign in through FB w/o consulting users, thought it was invasive – although you have to sign in with FB, you can hide your activity if you want• Spotify’s main goal in partnering with FB is to have people rely on the unique sharing options that are offered only on Spotify• Making it free for 6 months allows people to make worry-free recommendations – if friends don’t like artist or song you recommend, at least they didn’t waste money on it• Hope is that after 6 months users will find other users they trust with recommendations and upgrade accounts• http://www.youtube.com/watch?v=FjAr5nGzjV8
  5. 5. How do I use Spotify?• Visit spotify.com, click “Get Spotify,” choose access level• Sign in with Facebook account, download, save, open file• Browse friend’s public playlists and favorites – friends all listed on right-hand side• Can stream friends’ music or search for your own with the search bar• Click the star icon next to each track to note favorites, click “create new playlist” to create public and private playlists• Can subscribe to friends’ playlists, get notifications when they’re updated and automatically imports to your playlists• Imports your iTunes library and includes a radio
  6. 6. What does Spotify mean for artists?• In Spotify’s view, artists are brands that people can get behind, rally friends around• Songwriters receive 10.5% of Spotify revenue, according to Oct. 2011 Rolling Stone article• With Spotify artists no longer have to rely on music critics – everyone who uses the service becomes a music critic• Some artists not buying into it. Coldplay refused to release its latest album to free music streaming services• Coldplay said its album was meant to be heard the way it was recorded, not through a streaming service• Album broke the record for digital music sales – 80,000 downloads from iTunes in first week
  7. 7. What’s Next?• Spotify wants to continue improving social, sharing capabilities, capitalize on that as unique selling point• Other streaming services not going down without a fight: - Rhapsody debating implementing a six-month “freemium” option - PURE will launch in UK in December. Similar to and cheaper than Spotify, but no local caching to store songs for offline access, no mobile apps• Spotify developing an Android app, will continue to develop and enhance mobile apps to entice users to upgrade to premium account
  8. 8. What do YOU think of Spotify?• “I use it when I want to listen to one specific artist because it has so many songs.” – Rosa Perez, junior• “It’s the only way I listen to music now. It’s so easy to use and has everything I want to listen to.” – Michelle Gaston, junior• “I prefer using playlists on my iPod. It’s just easier for me.” – Kevin Zambrano, junior• “I like seeing what my friends are listening to. I’ve found some cool music that way.” – Danielle Stewart, sophomore• “I don’t use Spotify. I just download music from YouTube and store it in my iTunes.” – Jen Camasso, junior
  9. 9. Conclusions & Questions• Spotify has the potential to become THE music streaming service – so far it has advanced and useful sharing capabilities• How will it fare against other services making changes specifically to compete with Spotify? Needs to stay ahead of the curve• Will it diversify its partnerships beyond Facebook? Could be key to maintaining its status in the future• If it sticks with limited access after 6 months, it must give users a reason to stay with it instead of finding an unlimited alternative• Needs to be sure not to take customers for granted, alienate users the way Netflix did – keep convenience and functionality at forefront of decision-making

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