Spotify was created by Ek Daniel and Martin Lorentzon who wanted to build a better music streaming service than iTunes. They came up with the name Spotify by accident. To succeed, they negotiated licensing deals with record labels to stream music in exchange for royalty payments. Spotify now charges subscribers $12 per month for ad-free streaming across devices and also generates revenue from advertisements. With persistence and investor funding, Spotify has grown to fill the gap in the online music market.

1. SPOTIFY
How It All Got Started

2. IDEATION
 Ek Daniel and Martin Lorentzon joined
together to create Spotify after they realized
they could make a streaming device better
and more efficient than Itunes
 They came up with the name after mishearing
some ideas of names and typing in “Spotify”
instead.
 Eka dn Lorentzon both grew up with a
background in start up companies, Ek being
a professional programmer and Lorentzon
being and executive investor

3. STRATEGIES
 Convert with label companies, stream
their music in return for paying the
company big bucks
 Gives label companies royalties
 Lets the companies have the upper hand
 Gives the listeners a free database that
lets them listen to music anywhere at
anytime

4. MARKET SEGMENTS
 They aimed at the music industry and
technological fields
 Once Ek was introduced to Napster and
Itunes, he realized there was a gap in the
market and knew he could figure out a
way to fill that gap.

5. REVENUE
 They charge a subscription fee of $12/month
if customers want ad-free music to listen to
along with being able to open up Spotify from
any tablet
 Also receive revenue through their ad-base
model where they offer advertising
placements to any company
 Investors also help with revenue, as they have
had up to $1 billion from single company
investors

6. BOTTOM LINE
 If you have an idea, you need to run with
it, no matter if it gets turned down.
 Do not give up on your dreams.
 You are going to fail but know what to fix
and how to turn it around.
 If you stick to your guns, you will
eventually rise to the top