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Spotify

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Spotify

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Spotify

  1. 1. SPOTIFYYouTube of music?
  2. 2. MUSIC LOVERS
  3. 3. MUSIC INDUSTRY
  4. 4. MUSIC LOVERS MUSIC INDUSTRY
  5. 5. TRADITIONAL SALES CHANNELS DON’T WORK ANYMORE Music industry fell from $27B in 1999 to $14B in 2008
  6. 6. $100M
  7. 7. $100MPaid to right owners
  8. 8. $100M Paid to right owners2nd biggest revenue stream from music
  9. 9. AGENDA 1. What is Spotify? 2. Strengths 3. Weaknesses4. YouTube of music?
  10. 10. WHAT IS SPOTIFY?
  11. 11. [VIDEO]
  12. 12. music player
  13. 13. streaming music player
  14. 14. On-demand streaming music player
  15. 15. Foundedin Sweden 2006
  16. 16. Foundedin Sweden Launch 2006 Oct 2008
  17. 17. Founded 1Min Sweden Launch users 2006 Oct Mar 2008 2009
  18. 18. Founded 1M Mobilein Sweden Launch users app 2006 Oct Mar Sep 2008 2009 2009
  19. 19. 3M active users 1.3M subscribers Founded 1M Mobile U.S.in Sweden Launch users app launch 2006 Oct Mar Sep July 2008 2009 2009 2011
  20. 20. 3M 5M active active users users 1.3M 2M subscribers subscribers Founded 1M Mobile U.S. Facebookin Sweden Launch users app launch integration 2006 Oct Mar Sep July Sep 2008 2009 2009 2011 2011
  21. 21. BUSINESS MODEL Spotify Open Spotify Unlimited Spotify Premium Free $4.99 / month $9.99 / month No adds Ad-supported No adds No limitsLimited tracks/month No limits Offline Mobile
  22. 22. COMPETITION
  23. 23. DIRECT SALE STREAMING RADIO iTunes Rhapsody MOG last.fm Pandora CD Rdio Vinyl Napster STORAGE PIRACY Google Music RapidShare Amazon Cloud Drive Grooveshark? Apple iCloud
  24. 24. SPOTIFY’S STRONG POINTS
  25. 25. EASY TO USEFind & play music in <1 second
  26. 26. UNIQUE TECHNOLOGY
  27. 27. PARTNERSHIP WITH MAJOR LABELS EMI Music Sony BMG Universal Music Group Warner Music Group
  28. 28. PLAYS YOUR OWN FILES TOO Integrated with iTunes
  29. 29. IT’S SOCIAL Sharing playlistsFacebook integration
  30. 30. EXCLUSIVE RELEASES U2’s No Line On The Horizon in Jan 2009Alicia Keys’ The Element of Freedom in Dec 2009 R.E.M.’s Collapse Into Now in Mar 2011 ...
  31. 31. PARTNERSHIP WITH OTHER BRANDS WD TV Live Onkyo Sonos Shazam
  32. 32. SPOTIFY’S WEAK POINTS
  33. 33. FREE USERS Although Spotify has 20% conversion rate (freemium models usually have 5-10%) Spotify still has to pay for licenses(e.g. in UK: 0.085p per streamed track, or 10.5% of your revenues, whichever is greater) Average user listens to 70 minutes / month (2009)
  34. 34. OPERATING LOSS -$26.1M (2009) -$41.5M (2010)
  35. 35. AVAILABLE ONLY IN 9 COUNTRIES Sweden Netherlands Finland Germany Norway France Denmark UK USA
  36. 36. NOT ALL ARTISTSOnly those that are digitalized & licensed for streaming
  37. 37. NEED TO DOWNLOAD DESKTOP CLIENT
  38. 38. LIMITED FUNCTIONALITY ON MOBILE
  39. 39. SO WILL IT BE “YOUTUBE OF MUSIC”?
  40. 40. SEAN PARKER
  41. 41. SEAN PARKER Napster co-founder Facebook investor Spotify investor“Spotify is the answer to piracy.”
  42. 42. PEOPLE DON’T WANT TO OWNPEOPLE WANT TO USE
  43. 43. THANK YOU QUESTIONS? This presentation was proudly created while listening to Spotify
  44. 44. PHOTO CREDITS(Spotify logo) http://www.spotify.com/us/about-us/press/images/(Spotify application) http://www.spotify.com/us/about-us/press/images/(abstract green) by Kevin Dooley http://www.flickr.com/photos/12836528@N00/2853368756/(race) by Oberazzi http://www.flickr.com/photos/42788859@N00/318947873/(questions) by sickmonk http://www.flickr.com/photos/43013588@N03/5903272581/(dog&gramophone) by Cea http://www.flickr.com/photos/33255628@N00/5522477000/(baby) by TedsBlog http://www.flickr.com/photos/77154962@N00/43433855/

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