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Spotify's Freemium Model Drives Revenue and Losses
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Spotify's Freemium Model Drives Revenue and Losses
1.
SPOTIFY TECHNOLOGY Albert Gang (albgang)
2.
Problem?
3.
Financial Information Revenue in
2015: $2.1 billion Loss: $206 million Royalties: $1.8 billion
4.
Business Model - “Freemium”
model - 100 million users - 50 million paid users - Brand sponsored playlists
5.
6.
Types of Subscriptions
7.
Short History 2005 -
Started by Daniel Ek and Martin Lorentzon 2006 - Officially founded! 2007 - Release of the public beta 2009 - Mobile app platform 2011 - Launched in the USA
8.
Struggles
9.
Secret Sauce?
10.
11.
12.
13.
Competition Pricing/month $10-$15 $10-$20
$10-$15 $4 On-Demand Listening Free Version Social
14.
Prediction?
15.
References https://techcrunch.com/gallery/a-brief-history-of-spotify/ http://fortune.com/2016/05/24/spotify-financials/ http://www.recode.net/2016/5/23/11749122/spotify-losses-revenue-2015 http://time.com/3554468/why-taylor-swift-spotify/ https://brandsnews.spotify.com/us/2016/05/26/introducing-sponsored-playlist/
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