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ARTISTS
Spencer McLeod • Haydn Hickson • Sasha Allen • Olivia Bruce
PLAYLISTS
Building Spotify
Situational Analysis
Positioning
Competitive Landscape
Future Recommendations
HISTORY
SWEDISH BEGINNINGS
➤ Founded in 2006 by Swedish
entrepreneurs Daniel Ek &
Martin Lorentzon
➤ Core service in helping
consumers identify music,
songs and artists
➤ Driven by vision to end piracy
BUSINESS MODEL
➤ Operates on freemium model
➤ Acts as a legal alternative to
music piracy
➤ More convenient and cost
effective than physical
purchase of CDs or pay-per-
track options
APPLICATION & SERVICES
➤ Initial edge over
competitors was
interactivity and social
connectivity
➤ Personalised features,
such as “Discover,”
“Spotify Running” &
“Release Radar”
➤ Youth market captured
with first student
pricing for Premium
service in the U.S.
CURRENT POSITION
High Number of
Features
High Willingness
to Pay
Low Number of
Features
Low Willingness
to Pay
Tidal
Apple Music
Google Play
Music & Youtube
Red
Amazon Music
Pandora
Spotify
BRAND IMAGE
TARGET AUDIENCE
➤ Main consumers are
Millennials
➤ Demand customisation, ease-
of-use, and range of content
➤ Targets people across
demographics & needs
➤ Looking towards the future…
➤ Music fans seeking rich &
high-quality content
➤ Consumers switching service
providers
➤ Loyal listeners to Spotify
COMPETITIVE LANDSCAPE
SPOTIFY VS APPLE MUSIC
➤ Similarities
➤ Service offering and value
➤ Catalogue size
➤ Exclusive content
➤ Offline sync
➤ Differences:
Strong Emotional
Connection
➤ Low levels of perceived risk
➤ Loyal customer base and
reputation
➤ Not dependent on streaming
service revenue
GOOGLE PLAY & YOUTUBE RED
➤ Google Play includes
YouTube Red subscription
➤ Similar catalogue size
➤ Similar commitment to
personalisation/
customisation
➤ Offline playback
➤ Poor interface design &
brand saliency
AMAZON MUSIC
➤ Higher price point (but
discounted for Amazon
Prime members)
➤ Less exclusive content
➤ Limited catalogue
➤ Low brand saliency
PANDORA
➤ Low-cost option
➤ High brand saliency
➤ Limited catalogue
➤ Failure to adapt to
streaming industry
TIDAL: A FUTURE THREAT
➤ Potential to be a major
threat because of:
➤ Provides deeper connection
with artists
➤ High-fidelity streaming
➤ Access to exclusive content
➤ Resonates well with millennial
audience
➤ Elicits emotional response
➤ Most innovative brand
CHALLENGES
➤ Lack of clear brand identity
➤ Means different things to different people
➤ Differentiation from its rivals
➤ Pricing & features unique to Spotify
➤ Customer conversion
RECOMMENDATIONS
SPOTIFY AMPLIFIED
THE ONE-STOP MUSIC SHOP
➤ Expanding the offering
➤ Giving consumers a platform
for all things music
➤ Brings music videos, full length
concerts, concert tickets and
merchandise all into one place
SPOTIFY AMPLIFIED: VIDEO
➤ Competes with YouTube music video monopoly
➤ Music videos, concerts, live-streams, interviews and other exclusive
content
➤ Available to paying users only
➤ Partnership with VEVO
SPOTIFY AMPLIFIED: CONCERTS
➤ Engage Spotify users with music events near their location
➤ Suggestions based on listening history
➤ Users notified when their favorite artists are nearby
➤ Purchase through application
SPOTIFY AMPLIFIED: MERCHANDISE
➤ Access to official merchandise from favorite artists
➤ Redirected to official artist websites to ensure authenticity
➤ Range of incentives include free shipping, discounted stock
and access to exclusive sales
SPOTIFY SWITCH
➤ App function to ensure easy
transfer of meta-data,
downloaded music and
playlists from any other
streaming service
➤ Rejects any negative stigma
or hesitation with switching
SPOTIFIED: THE LOYALTY PROGRAM
➤ Designed to reward paying
users for loyalty and
commitment to Spotify
brand
➤ Subsequently, this will
prevent users from
switching to competitors
when offered alternative
incentives
LOYAL GOLD PLATINUM
• 1 Year of
membership
• Merchandise:
free shipping
through Spotify
app
• Music: Exclusive
listens to
certain albums
before release.
Selected
albums only
• 3 Years of
membership
• Merchandise:
10% off all
items and free
shipping
• Music: Exclusive
listens to
certain albums
before release.
Selected
albums only
• Live Gigs:
Exclusive access
to pre-sales
• 5 Years of
membership
• Merchandise:
20% off all items
and free
shipping
• Music: Exclusive
listens to certain
albums before
release. Selected
albums only
• Live Gigs:
Exclusive access
to pre-sales and
discounted
tickets
SONGS FOR…
Q&A

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The Spotify Brand

  • 1. ARTISTS Spencer McLeod • Haydn Hickson • Sasha Allen • Olivia Bruce
  • 4. SWEDISH BEGINNINGS ➤ Founded in 2006 by Swedish entrepreneurs Daniel Ek & Martin Lorentzon ➤ Core service in helping consumers identify music, songs and artists ➤ Driven by vision to end piracy
  • 5. BUSINESS MODEL ➤ Operates on freemium model ➤ Acts as a legal alternative to music piracy ➤ More convenient and cost effective than physical purchase of CDs or pay-per- track options
  • 6. APPLICATION & SERVICES ➤ Initial edge over competitors was interactivity and social connectivity ➤ Personalised features, such as “Discover,” “Spotify Running” & “Release Radar” ➤ Youth market captured with first student pricing for Premium service in the U.S.
  • 8. High Number of Features High Willingness to Pay Low Number of Features Low Willingness to Pay Tidal Apple Music Google Play Music & Youtube Red Amazon Music Pandora Spotify
  • 10. TARGET AUDIENCE ➤ Main consumers are Millennials ➤ Demand customisation, ease- of-use, and range of content ➤ Targets people across demographics & needs ➤ Looking towards the future… ➤ Music fans seeking rich & high-quality content ➤ Consumers switching service providers ➤ Loyal listeners to Spotify
  • 12. SPOTIFY VS APPLE MUSIC ➤ Similarities ➤ Service offering and value ➤ Catalogue size ➤ Exclusive content ➤ Offline sync ➤ Differences: Strong Emotional Connection ➤ Low levels of perceived risk ➤ Loyal customer base and reputation ➤ Not dependent on streaming service revenue
  • 13. GOOGLE PLAY & YOUTUBE RED ➤ Google Play includes YouTube Red subscription ➤ Similar catalogue size ➤ Similar commitment to personalisation/ customisation ➤ Offline playback ➤ Poor interface design & brand saliency
  • 14. AMAZON MUSIC ➤ Higher price point (but discounted for Amazon Prime members) ➤ Less exclusive content ➤ Limited catalogue ➤ Low brand saliency
  • 15. PANDORA ➤ Low-cost option ➤ High brand saliency ➤ Limited catalogue ➤ Failure to adapt to streaming industry
  • 16. TIDAL: A FUTURE THREAT ➤ Potential to be a major threat because of: ➤ Provides deeper connection with artists ➤ High-fidelity streaming ➤ Access to exclusive content ➤ Resonates well with millennial audience ➤ Elicits emotional response ➤ Most innovative brand
  • 17. CHALLENGES ➤ Lack of clear brand identity ➤ Means different things to different people ➤ Differentiation from its rivals ➤ Pricing & features unique to Spotify ➤ Customer conversion
  • 19. SPOTIFY AMPLIFIED THE ONE-STOP MUSIC SHOP ➤ Expanding the offering ➤ Giving consumers a platform for all things music ➤ Brings music videos, full length concerts, concert tickets and merchandise all into one place
  • 20. SPOTIFY AMPLIFIED: VIDEO ➤ Competes with YouTube music video monopoly ➤ Music videos, concerts, live-streams, interviews and other exclusive content ➤ Available to paying users only ➤ Partnership with VEVO
  • 21. SPOTIFY AMPLIFIED: CONCERTS ➤ Engage Spotify users with music events near their location ➤ Suggestions based on listening history ➤ Users notified when their favorite artists are nearby ➤ Purchase through application
  • 22. SPOTIFY AMPLIFIED: MERCHANDISE ➤ Access to official merchandise from favorite artists ➤ Redirected to official artist websites to ensure authenticity ➤ Range of incentives include free shipping, discounted stock and access to exclusive sales
  • 23. SPOTIFY SWITCH ➤ App function to ensure easy transfer of meta-data, downloaded music and playlists from any other streaming service ➤ Rejects any negative stigma or hesitation with switching
  • 24. SPOTIFIED: THE LOYALTY PROGRAM ➤ Designed to reward paying users for loyalty and commitment to Spotify brand ➤ Subsequently, this will prevent users from switching to competitors when offered alternative incentives LOYAL GOLD PLATINUM • 1 Year of membership • Merchandise: free shipping through Spotify app • Music: Exclusive listens to certain albums before release. Selected albums only • 3 Years of membership • Merchandise: 10% off all items and free shipping • Music: Exclusive listens to certain albums before release. Selected albums only • Live Gigs: Exclusive access to pre-sales • 5 Years of membership • Merchandise: 20% off all items and free shipping • Music: Exclusive listens to certain albums before release. Selected albums only • Live Gigs: Exclusive access to pre-sales and discounted tickets