Spotify, founded in 2006, is a digital music streaming service launched in 2008 that allows users to access millions of songs while providing a freemium model with both free and premium subscriptions. The company aims to support artists and enhance music discovery through innovative features and marketing strategies, targeting millennials particularly through personalized experiences and technology. Competition includes other streaming services like Apple Music and Pandora, leading Spotify to utilize AI and trend research for improved user engagement and satisfaction.

1. L A U R A S O R R E N T I N O
M E G A N D R U R Y
M A R I A H E N A O
S A M A N T H A V O LT M E R
A L E X B O R O W I C K

2. MEET THE TEAM

8. HISTORY
2006
Founded in Stockholm in
2006 by Daniel Ek and
Martin Lorentzon
7 Oct. 2008
streaming service launched
on October 7, 2008, free
services were invite only
2008
$4.4 Million loss in 2008
2009
App launched in the Apple
Store app and free service
was made available to the
public
2015
company updated and
rebranded itself
2018
IPO

9. BOARD OF DIRECTORS
• Daniel Ek – Spotify CEO
• Martin Lorentzon (Vice Chairman and Co-Founder)
• Christopher (Woody) Marshall - board of
HomeAway.com, Board of XATA
• Shishir Mehrotra - Cofounder and CEO of CODA
(software)
• Heidi O’Neill - President of Nike Direct
• Ted Sarandos - COO of Netflix
• Thomas Staggs - former COO of Walt Disney
• Cristina Stenbeck - Chairman and principal owner of
Investment AB Kinnevik
• Padmasree Warrior - CEO of NIO

10. CEO
• Daniel Ek has been CEO
since company started in
2008
– Co-founder
– Swedish billionaire
– Developed the platform
as a response to the
“growing piracy problem
the music industry was
facing”

11. C-SUITE
Luca Baratta
Chief
Accounting
Officer
Previously CAO
of TwitterBarry McCarthy
Chief Financial
Officer
Previously CFO of
Netflix
Katarina Berg
Chief Human
Resources Officer
Alex Norstrom
Chief Premium
Business Officer
Gustav
Soderstrom
Chief Product
Officer
Dawn Ostroff
Chief Content
Officer

12. VISION
• Our mission is to unlock the potential of human creativity—by
giving a million creative artists the opportunity to live off their art
and billions of fans the opportunity to enjoy and be inspired by it.
Mission
Statement:
• Innovative
• Collaborative
• Sincere
• Passionate
• Playful
Core Values

13. BCG PORTFOLIO

14. FINANCIAL STANDING
Founders Fund investment
Feb. 2010
$100 million in funding for US
launch
•New funding valued Spotify at $1B
June 2011
Goldman-Sachs funding $100
million
Nov. 2012
$526 million
•New value of $8.53B
June 2015
$500 million through convertible
bonds
Jan. 2016
$1 billion in financing by debt plus
a discount of 20% on shares once
the IPO of shares takes plus
Mar. 2016

15. STOCK PRICE/MARKET
CAP
Stock price: $138.75 USD as of
11/28/2018 4:02PM
SPOT

16. WHAT IS SPOTIFY?
"Spotify is a digital music,
podcast, and video streaming
service that gives you access
to millions of songs and other
content from artists all over
the world"
Services
“Freemium”
Free – basic functions like:
playing music and creating
playlists
Premium – browse and search
Mediums:
Available on computers,
phones, tablets, speakers,
TVs, game consoles, and in
cars

17. WHY SPOTIFY?
Three Options
Available
Standard
Everything included, $10
a month
Family
5 memberships, $15 a
month,
Student
Only available to college
students, $5 a month,
Other Subscriptions
Included
Multiple Ways to Listen

18. COMPETITIVE ANALYSIS
SPOTIFY
APPLE MUSIC
PANDORA
PRICE CONTENT
USER
EXPERIENCE
CREATIVITY CUSTOMIZATION

19. SOCIAL TRENDS
Listeners prefer playlists with a mix of artists
and genres as opposed to listening to whole
albums at a time
Being featured in curated playlists affects
artists' success
Artists can verify what the meaning behind
the lyrics are to their songs

20. TECHNOLOGICAL
TRENDS
• Artificial Intelligence—streaming services are
investing in AI in order to improve curating playlists
for consumers, music discovery, and distribution
• Improving recommendation algorithms
• Evolution of trend research—Spotify is using Natural
Language Processing to track online publications,
conversations, and social media to identify trends
and better fit consumers' needs
• Social listening—industry wide, streaming services
use Ubermetrics Delta to track conversations on
channels the company did not know existed, thus
finding new markets

21. ECONOMIC TRENDS
Facebook is
seeking to secure
music licensing
deals with major
labels
Facebook, Apple,
and Google are
trying to gain
market share in
the music industry
Revenue in the
music streaming
industry is
expected to grow
5.5% annually
Most revenue is
generated in the
United States

22. COMPETITIVE
TRENDS
Apple music is launching a publishing
division—one step closer to becoming
a record label
Apple music is home-growing video
content
YouTube is entering the
online music streaming, with
a more social outlook

23. REGULATORY TRENDS
• Songwriters are fighting to be paid more in royalties
• Legal debate on whether streaming and copying music are the same/different
• Lawsuits (artists copying music, creators going after streaming services)
• Inadequate meta data (what keeps streaming services from paying royalties, industry
wide issue)
• Spotify is solving this by acquiring Mediachain Labs, a blockchain—a growing list of
records, called blocks, which are linked using cryptography. Each block contains a
cryptographic hash of the previous block, a timestamp, and transaction data.

24. SWOT
Strengths
- Upon its launch, filled a
major gap in the market
– no one else had
offered fully
customizable playlist
creation before.
- Offer the same exact
song catalogue to all of
its consumers, regardless
of whether or not they
subscribe
-If you chose not to pay
get the same great
service as those with a
Premium subscription –
they just have
advertisements.
- Use Facebook to share
what they are listening to
and send songs to their
friends
Weaknesses:
- While advertisements
are needed to generate
revenue, there are other
digital streaming
companies that allow
customers to listen to
music for free with few
or no commercials, such
as Songza.
- Artists are not inclined
to work with Spotify
since the free service is
taking revenue from the
artist
-
Opportunities:
- Available in 57
countries world-wide. It
has just started to
expand rapidly in 2018,
and it plans to continue
that expansion
- Could be expanding to
more live music
steaming, live band
interviews, and more
music videos
- Work with Artificial
Intelligence to improve
curated playlists
Threats
- Piracy of music may be
on the decline, but it is
still a major threat to the
music industry.
- Amazon, Google and
Apple could take Spotify
place in the streaming
platform market as they
are also very trusted and
very followed brand
- more artists may take
their music down and
join other services who
may benefit them more

26. NEEDS OF CONSUMERS
• Spotify users have 2 clear needs:
1. Stream, save and store their music in an easy, fast
and convenient way
2. Find and discover new songs and artists
• Spotify uses these needs to their advantage
The true value in Spotify is the discovery—you’re able to discover new songs and artists
with the technology behind their recommendation engine along with some of the curation
they’ve done

27. TARGET MARKET
Spotify's main
target market is
the average
millennial
Someone who spends time listening to music on multi-platforms,
streams more at night, and like a diverse range of music
72% of Spotify listeners fall under the millennial age bracket (aged 22-
26, and including those younger than 22)
Spotify's target
market is also
comprised of
"Tech Early
Adopters" and
"Moms" according
to the Spotify
website
Tech Early Adopters stream on their gaming consoles, and have the
latest tech at their fingertips, they like music that matches their moods
and listen on repeat
Moms listen in the early morning hours, and during their sleep time,
they like nostalgic music, but also listen on repeat

28. MEET SAM
JUST YOUR AVERAGE MILLENNIAL
LISTENER
• Regardless of the gender, Millennials are Spotify's top listeners
– Sam is a typical busy millennial, Sam attends a four-year university,
most likely a state institution
– Sam has a part time job and an internship that requires Sam to take
the train to and from the city twice a week
– Sam likes to listen to Spotify always of the day for various reasons
• Sam is what Spotify calls a casually listener
• Sam listens to throwback playlists on the train and while
studying – Throwback Thursday Playlist
• Sam listens to Rap while working out three times a week – Rap
Caviar Playlist
• Sam also listens to the Global Top 50 Playlist at night with
friends on the weekend at parties
– Because Sam always likes to listen to music and at various locations,
Sam uses the Spotify Mobile App the most out of all the Spotify
platforms and updates it frequently
– Sam uses Spotify Premium for Students – Sam loves the added perks
such as Hulu
• Since Sam primarily works an hourly wage job, this best fits
Sam's budget

29. MEET DAN
HE PRIDES HIMSELF OF BEING AHEAD OF
TECH TRENDS
• Early Tech Adopters who use Spotify are predominately Male
• Dan spends his time either in front of the computer screen at work, or
in front of the TV screen at home playing video games
• Dan truly feels the weight of the world on his back, especially when
playing the latest version of Call of Duty so he listens to the Top
Gaming Tracks Playlist
–However when Dan plays Fortnite he loves to listen to the Rap
Caviar Playlist
• Dan is very fashion forward and is a firm believer that bow ties are
cool
• He is an investment broker by day, and a famous YouTube tech
reviewer by night
– He definitely can afford the full Premium Plan and doesn't think
twice about the cost
• Dan listens to Spotify twice as much as the typical user because music
helps him advance his endeavors throughout the day
– Music increases his performance

30. MEET JESSICA
SHE IS A SUPER MOM
• Jessica is not your typical housewife type of mom
• Jessica is an empowered working woman
• She is highly motivated
– She gets up EARLY – and we are talking between 5 – 6 am
– She starts her morning off with Spotify early to help her get through her
morning workout, getting dressed for work, getter her kids ready for
school, and getting her pumped for the busy day ahead
• Her to go morning playlist is Today's Top Hits Playlist
• Jessica is very into health and beauty, she loves subscription boxes and
services, hence why she uses Spotify over the radio
– She especially loves Spotify when she is in the car, which is where a lot
of her time is spent between her commute to work and her kids school
carpools and sports
– She also likes how convenient Spotify is – just like how she likes getting
her Starbucks via drive through
• Jessica also knows music is powerful and uses it to calm and entertain her 2.5
children with the Sing Along Playlist
• Before Jessica's busy day comes to an end, she likes to wind down with a
yoga session and listens to the Yoga & Meditation Playlist
• Jessica has made through another day and falls quickly asleep to listening to
the Sleep Playlist

31. THE GOALS AND EXPECTATIONS OF
SAM, DAN, AND JESSICA
Sam
Goal: A music service that meets the various
lifestyles of millennials. The service must have
music for all occasions and convenient
Expectations: Sam expects Spotify to fit Sam,
and adapt and grow with Sam
Dan
Goal: Early Tech Adopters want music that will
fit their moods and better themselves through
music. They also want the music service to
boost their social status
Expectations:Dan expects Spotify to be the most
cutting-edge music streaming service
Jessica
Goal: Moms want music for themselves, but
also for music that is appropriate for
themselves
Expectations: Jessica expects Spotify to be there
for her no matter the time and have ready the
type of music she needs at that moment

32. PERCEPTUAL MAP
LOW
COST
HIGH
COST
HIGH
EXPERIENCE
LOW
EXPERIENCE
Regardless of which target
market viewed their
perception of Spotify is the
same in this case

33. PRODUCT
LIFECYCLE

34. Awareness
– Billboards, YouTube Ads, MetroCards NYC, Sponsorships
Consideration
– Spotify Web or App, comparative bloggers, google
Trial
– free month trial, extra deals during the holidays, gift cards
Purchase
– easy online payment, reoccurring so you don’t have to worry
Loyalty/advocacy
– AdOns like Hulu and Showtime, Curated playlists
Influencers
– Shawn Mendes and Frank Ocean
MARKETING
FUNNEL

35. Action
Opportunity
Touchpoints
Feeling
Thinking
Awareness Consideration Trial Purchase Loyalty
• Advertisements on
YouTube
• Browse twitter to
see other opinions
• Talk to family,
friends, and
coworkers
• go on google to
explore options
• Search engine,
magazines, social
media, email, word
of mouth
• Overwhelmed
• Anxious
• Curious
• “How can I easily
access and listen to
music?
• “What are the
current online
streaming services?”
• Put ads on social
media
• Promote free month
trial
• Email marketing
• Go on Spotify app
• Try out freemium
• Go on Reddit,
YouTube or blogs to
see expert opinions
• Begin to look at
prices and features
• “I like the music
choices but I do not
like ads”
• “How is this better
than apple, google
or amazon music?”
• Intrigued
• Concerned
• Confused
• Monitor social media
feedback to gain
insight on what
customers are saying
about you and your
competitor
• Spotify app, search
engine, word of
• Try out Spotify
premium for one
month (if Christmas
3 months)
• Try out extra
features like Hulu
and Showtime
• Become familiar
• Purchase Spotify
premium for college
students, receive
extra features
• Use it as main source
of music
• Download it on iPad,
iPhone, and laptop
• Tell friends and
family about Spotify,
share playlists
• Continue purchasing
premium
• Write positive
reviews on social
media
• Forums, customer
service, billing
• Websites, invoices,
thank you cards
• App, email,
display, website
• More aware
• Excited
• Contemplative
• Email customer
survey to evaluate
the purchasing
experience and
receive feedback
for improvement
• Productive
• Devoted/invested
• Beyond satisfied
• Make customers
aware of the extra
ad-ons (Hulu and
Showtime) as well as
family and college
plans.
• Confident in purchase
• Fulfilled
• Trendy
• Optimize
curated playlists
for consumer
and show more
personalized
experience
• "I really like how
there are no ads, so
I can listen to music
uninterrupted. I like
the playlists curated
specifically for me."
• "I am happy I made
this purchase. I'm
going to use the Rap
Caviar playlist when
I'm at the gym"
• "I introduced my
girlfriend to Spotify,
and we make
playlists for each
other to listen to".

37. MARKETING STRATEGIES
Word-of-mouth
PR and co-marketing
- Drowned in Sound monthly playlist
- Music magazine NME offers apps with playlists
- Festivals and charities engage their own audiences
October 2008
- 5 invites to share with friends
"invitation only"

38. CREATIVE CONTENT STRATEGY
• Main goals:
– supporting artists
– helping them find fans
– helping fans discover more
music
• Creative team takes briefs from:
– Premium to drive
subscriptions
– Content team for next
releases of major artists
– Finance team to build out
• Saturday Morning
– Small collective of
senior creatives of color
– Think through the work
to support communities
of color
• Collins Design Agency
– Built visual identity
system

39. CREATIVE STRATEGY
EXAMPLES
• Today: Love What You Love campaign
– Raise awareness for updated free tier
• NYC promoting new singles

40. CREATIVE STRATEGY - "SWEETENER
LAND"
• Collaborated with Ariana Grande to turn her album "Sweetener" into an immersive pop
up exhibit in NYC from September 29th-30th
• Exemplifies values of creativity, innovation, and optimizing consumer experience
– Mission statement- "to unlock the potential of human creativity"
• Strategic move, since Ariana is attractive to target markets Sam and Jessica
– (she has 41,308,861 monthly listeners)
• First streaming service to do this
• Each room represents a different song on the album and stimulates sight, smell, and
touch senses
• It had an RSVP list that filled within minutes, but was open to the public the remaining
days

43. MEIDA STRATEGY – MUSIC SCHOOL
WITH CARDI B

44. MEDIA STRATEGY – MUSIC SCHOOL
WITH CARDI B
• The "students" are Millennial Sam – the target market actually sees themselves in the
ad and can relate to it
• Spotify's goal to connect creator and listener is visually represented by physically
putting listeners in the room with the creator
• This represents the experience Spotify wants to give its users—both listeners and
creators alike
• Spotify waits until the end to reveal the ad as a Spotify ad, because their primary goal
is to optimize consumer/creator experience first

45. CREATIVE AD STRATEGY
• Always focus on the value of the artist
–Ties back to mission statement
• Portray artists & listeners as in the same room
–That's how you feel when you listen to Spotify

46. ARTIST’S
PERSPECTIVE
• “As an artist, I feel like Spotify is much better at
algorithmic discovery / giving new comers the
spotlight.”
• Spotifly discover weekly changed her career
• What really got her more well-known
• Featured on “New Music Friday”
– How her agent discovered her
– Future gigs

47. ROI
Our projected ROI and
optimization is 10:1
For every $10,000 we spend,
we expect 1,000 customers in
return.

48. 4 ZONES – LET'S GET SOCIAL
Social Community
• 2.84M Twitter
followers
• 3.1M Instagram
followers
• Following over 400
of their artists on
Instagram
• Spotify YouTube
channel where they
publish their own
content
Social Publishing
• Content Strategy
• 2018 Wrapped
Up – engaging
artists with their
fans
• Shawn Mendes –
huge celebrity
proponent of
Spotify(
Social E-Commerce
• Reoccurring
payments –easy for
customers to set up
account and
"forget"
• Offer various
payment types-
credit card, PayPal,
Bitcoin
Social Entertainment
• Partnerships with
retail stores,
Netflix,and music
magazines
• "The Sounds of
Stranger Things"
• "J. Crew on Spotify"