Spotify is a music and podcast streaming service founded in Sweden in 2006. It has over 456 million monthly active users globally. Spotify faces competition from other music streaming services but has grown due to its innovative freemium model which allows basic use for free with ads. This has helped attract many users who then convert to paid premium subscriptions. Spotify also aims to diversify its content beyond just music to include podcasts and videos to continue attracting and retaining users.

1. PRESENTED BY ,
BIPIN SAI SURYA
SHARADA
YASHRAJ PATIL
NEW HORIZON COLLEGE OF
ENGINEERING
INNOVATION AND DESIGN THINKING

2. SPOTIFY

3. What is the symbol of spotify?

4. INTRODUCTION
Spotify is a podcast , music streaming service
Spotify was founded on 23 April 2006 by Daniel ek and Martin
Lorentzon IN SWEDEN
It is one of the largest music streaming service providers, with over 456
million monthly active users, including 195 million paying subscribers, as
of September 2022.
Spotify has its presence in 60 nations in the world unlike its competitors .
There are millions of tracks and episodes on Spotify. So whether you’re
behind the wheel, working out, partying or relaxing, the right music or
podcast is always at your fingertips.

5. GOAL OF SPOTIFY
• The main motive of Spotify was to provide freemium ship for people around the
globe as a response to the growing piracy problem the music industry was
facing.
• To reach out to as many users as possible so that the needs of the users can be
satisfied at a global level
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“We envision a cultural platform where professional creators
can break free of their medium’s constraints and where everyone can enjoy an
immersive artistic experience that enables us to empathize with each other and to
feel part of a greater whole.”
VISION OF SPOTIFY

6. PROBLEMS FACED BY SPOTIFY
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1)Winning over musician sceptics
2) 2020 Hacking Incident
3) Turning it profitable
4) Competitors
5) Music alone was not enough
•
•

7. • On 3rd July 2020, cybersecurity firm VPNMentor discovered a database
containing 380 million individual records, including the logins and
passwords of Spotify users.
• The database was thought to be evidence of an impending credential
stuffing cyber attack targeting Spotify as it contain the credentials of
up to 350,000 compromised user accounts.
• In response to the attack, Spotify issued a rolling reset of passwords for
affected accounts in November 2020
HACKING INCIDENT

8. Winning over musicians
Due to piracy many people were downloading music
for free so there was no CD sales and it was a big
loss for musicians and the music industry and when
Spotify was introduced to provide free music to the
audience musicians were not ready.
Spotify made a smart move and made a deal with
musicians that they will be providing money if the
musician give their music copyrights to Spotify.
Spotify has also launched a Spotify Artists website in
December 2013 to explain how it calculates
its payouts .

10. Turning it Profitable
• Streaming music is a tough business, to say the least. Companies like
Spotify pay out 70% of their revenue in royalties, spending the rest on
running their services, expanding globally and the other costs involved
in modern digital business.
• Spotify made a great move to turn its business profitable allowing other
companies to advertise on its platform and it also created a new
membership called Premium membership which gave additional
features to users
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11. •Today, 87% of Spotify’s streams are licensed from Universal Music Group (UMG), Sony Music
Entertainment (SME), Warner Music Group (WMG), and Merlin15.
•
•Spotify will need to diversify away from licensed catalogs towards other content sources which are
either proprietary to Spotify or net new in the market.
•Echoing the Netflix model of developing exclusive and proprietary content, initiatives like Spotify
Studios enable Spotify to directly develop artist relationships and content, which could yield
significantly better monetization and margins as demonstrated by the difference between Netflix’s
$3.24 gross profit per subscriber16, and Spotify’s $1.40 gross profit per subscriber.
•Spotify is also expanding beyond music content by offering podcasts, artist merchandise, concert
tickets, and short form videos that feature substantially higher margins or do not require fees.
•
•Diversified and exclusive content increases Spotify’s ability to raise premium subscription pricing in
the future.

13. Going beyond music
• To attract audience music alone was not enough,
they had to do more to make people fall in love with
Spotify and suggest others to use its platform
•Spotify introduced Podcast, any person in the world
can start his or her podcast and this made people love
this platform and then people started listening to
news, spiritual scripts, stories, poems, etc.… and not
only that they also had a chance to make one.

15. Competitors
When Spotify was introduced to the world there
were big music companies who have already
conquered the music world they were Apple music,
Napster, Pandora music, Deezer etc.…. So Spotify
had to fight them all to make its place in the music
world
Spotify innovatively made the music free which
attracted many people to listen music on their
platform and when people liked it they started
introducing new plans like freemium ship which
made Spotify the highest Global Music Streaming
Paid Subscription by Brand – 35%

16. INNOVATIVE STRATEGY OF
SPOTIFY
Freemium Model is the USP of Spotify
• The key feature of this platform is that it’s free for users only, with some ads
playing between the music. It has been found that this freemium model approach
has worked amazingly for Spotify because users can take benefit of free music
without paying for a subscription. Spotify also made the most of this feature to
promote ads in between to keep coercing the users consciously or subconsciously
to sign up for premium to listen to music without any ad breaks. This unique
marketing hack helped it boost its subscriber base around the world.
A Minimalistic App Interface
• Another critical aspect of Spotify’s marketing strategy is that its user interface in
the app, as well as chrome, is entirely minimalistic, easy to understand and classy.
This makes it a top choice for music fans as well as performers.

17. Connecting With Artists for Collaborations
• Spotify has close ties with the top artists of almost every mainstream industry.
This provides users with a way to connect to their top artists, which leads to open
live nights, another lovely way to attract more subscribers taking benefit of
exclusive content!
Emotional Ads for Promotion
• Even in India, Spotify ads often focus on a family, adding a punch of fun and
emotional intensity. So, either you will find ads during Christmas, Diwali, etc.
These cultural ads can popularize the brand better through a long-lasting impact.
Personalized at its Core
• Spotify’s AI interface has been conceptualized to personalize as per its users. Now,
whether it’s a millennial using Spotify for podcasts or music or Gen X searching
trending Instagram music. Spotify is ready to personalize all their preferences.

18. OUTCOMES OF DESIGN THINKING
METHODOLOGY IN THE ORGANISATION
• What made Spotify famous ?
• Back in the day people had 3 ways of listening to music one was to
buy CD’s , or buy a Apple device and get an Apple Music membership
and the third way which was the illegal way to listen music that is
Torrenting/Piracy. The first two ways costed money and the third
way dint, so people chose the illegal way to download music
• When Spotify was introduced to the world it also introduced
Freemium ship (basic services are provided free of charge while more
advanced features must be paid for) and most of the people liked