...Spotify Analysis Sarah de Ferrari, Danielle deFerrari Bryce Simantel, & Christine Osazuwa 1 Spotify is a music streaming platform that was founded in 2006 in Sweden by Daniel Ek and Martin Lorentzon with the goal of providing music to everyone. They worked with a Swedish developer experienced with peer-to-peer framework with the intent of connecting the music listener directly to the labels. Due to the nature of that relationship there is a need to negotiate with music labels for launch on a country-to-country basis, starting with their initial launch in Sweden in 2008. They are currently available in 57 countries with a limited launch currently underway in Canada and the Phillipines. The basic service offered by Spotify is the ability for users to create custom playlists that can be played through any internet connection. Spotify has two distinct product offerings, Spotify and Spotify Premium. Spotify Premium members pay a monthly subscription fee but have access to their playlists offline on multiple devices, thus having all the perks of owning the music while just paying $120 a year. Beyond that, Spotify is known for their social media interaction – users can interact with their friends and share playlists, and users can also follow the playlists of their favorite artists. Songs can be found by title, artist, or cd name, and various apps are available to enhance the service, such as radio streaming. Sean Parker, founder of Napster, invested $15M in Spotify...
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...Project Summary Introduction Spotify is an online commercial music streaming platform that, despite earning a massive sum of Euros in 2012, has never recorded any profit ever since its launch in 2008. Royalty costs and increases in licensing costs cover most of Spotify’s expenses, and these fees continue to be a problem as it prevents Spotify from making a profit. Purpose This paper aims to improve Spotify’s strategies in order to make its business more profitable. Method This paper will use secondary data to analyze both Spotify’s external and internal environments. The main tools used here are: PEST, SWOT and the Five Forces analysis. The paper will give insight into Spotify’s pricing and advertising methods, suggesting ways to make it more appealing to the everyday user and how to draw more customers in more efficiently. We will evaluate how long-term subscriptions and bonuses may keep a subscriber loyal to their services. Lastly we will look at how redeveloping their website can make it look more professional as well as make it easier for customers to find out information about Spotify. Conclusion At the end, this paper indicated that Spotify should lower its prices, collaborate with phone operators, reward loyal customers and implement bonus periods, as well as invest in smarter advertising and a better, more professional website. TABLE OF CONTENTS 1. Organization Overview 1.1 General information 1.2 Mission, vision and values 2. Strategic...
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...Sony Music Entertainment and the Evolution of the Music Industry Table of Contents Table of Contents…………………………………………………………………………………............................2 Recommendations…………………………………………………………………………………………………………..3 Appendix 1………………………………………………………………………………………….…………………………. 5 Appendix 2………………………………………………………………………………………….…………………………. 11 Appendix 3…………………………………………………………………………………………………………………….. 13 Appendix 4………………………………………………………………………………………….…………………………. 15 Appendix 5………………………………………………………………………………………….…………………………. 16 Appendix 6………………………………………………………………………………………….…………………………. 17 Appendix 7………………………………………………………………………………………….…………………………. 17 Appendix 8………………………………………………………………………………………….…………………………. 18 Appendix 9………………………………………………………………………………………….…………………………. 20 Appendix 10……………………………………………………………………………………….…………………………..21 Appendix 11……………………………………………………………………………………….…………………………..21 2 Recommendations 1. I recommend Sony continues to fight for market share in the digital media segment by investing in improvements to address the low, 3 star rating of its streaming service to allow it to compete with the large competitors, Spotify and Pandora. In 2014, The three main methods of digital music distribution included digital download, Internet radio, and interactive streaming. (Appendix 1) Sony’s operating income increased for the first time in 4 years due mainly to lowering costs and growth in digital revenue. As revenue from digital increases, Sony should...
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...Services Marketing Jennifer Willoughby, Co-VP of Service Marketing Date: December 5, 2014 Subject: Spotify Services Report 2014 Mr. Daniel Ek, The music streaming industry is extremely competitive; however, Spotify has managed to carry on as one of the top providers for music streaming, as well as increase their number of users exponentially over the past few years. Spotify stands out against their competition based on: * Well-known brand * Size of music library available * All of the music is stored in the cloud, allowing instant access * Website is easily navigated when searching for artists, albums, and tracks * Ability to customize and share playlists * Spotify’s high ethical standards and everything we do is legal * Free option with advertisements or pay $9.99 per month to avoid the interruptions. * Premium subscription allows users to use Spotify offline * Variety of applications that users can download to their home page leading to more possibilities and uses. * Can be used on a variety of different devices * User traffic has increased by 118% over the past 12 months (Sasson) Spotify is in a great position in the music streaming industry; however, there is always room for improvement. At Spotify, we want to be the best in the industry, while staying legal and ethical. After doing extensive research and evaluating Spotify, we have found the following weaknesses: * Limited offline use when using the free subscription...
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...The Marketing Plan Karen Ingram BUS 330 Principles of Marketing Instructor: Rokesha (Kay) Green October 5, 2015 The Marketing Plan Marketing has been around for many years but it is always changing and progressing. Marketing is about communicating the value of a product to consumers to promote or sell a product or service. Marketing makes the product unique even though there are similar item offered by competitors. Some activities of the marketing department include product development, advertising, promotion, distribution of sale, customer service, and public relations. Value is the main concept on which marketing is based. Value refers to how good an item is. Value is driven by personal needs and desires. Customer value is the value a specific exchange has for the customer as opposed to for the company (White, 2012). Marketing function determines customer value because it refers to the value of an item the customer receives. A marketer’s job is to develop an offering and to price it in such a way that its value attracts customers, yet it still makes a profit. This paper will introduce and market the product iTunes using the STP approach, discuss major environmental facts and trends in China, and contain a marketing plan for iTunes using the four p’s of marketing. A product that is sold in the United States and has sales opportunities in China is the intangible service iTunes from Apple. ITunes is a store in the form of an app that can be downloaded to ay electronic...
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...GBA490 Sony Case Study 18 October 2012 Table of Contents Appendix Exhibit 1………………………………………………………………..3 Exhibit 2………………………………………………………………..8 Exhibit 3………………………………………………………………..9 Exhibit 4………………………………………………………………..10 Exhibit 5………………………………………………………………..11 Exhibit 6………………………………………………………………..12 Exhibit 7………………………………………………………………..12 Exhibit 8………………………………………………………………..13 Exhibit 9………………………………………………………………..13 Exhibit 10………………………………………………………………14 Exhibit 11………………………………………………………………14 Exhibit 1: Dominant Economic Features Market Size and Growth Rate Record Label Market Size: * Total revenues for the music industry in 2011 was 7.4 billion dollars * Sony accounted for 27.6% of total market share * There were 231 businesses in this industry in 2011 * Regulation was heavy, the change in technology was high--causing revenue volatility--the barriers to entry were high, and competition was high. * See Photo: Market Growth Rate * Total Album Sales- Sony was second highest with 29.29% of the market share, behind the leader Universal by a slim 0.56% * Sony was still the leading holder of market share in physical album sales at 31.08% * In digital sales, Sony was still behind Universal by 2.99% and 6.76% in album sales and individual track sales, respectively. * Record labels as a whole were in decline * Regulation was high, as was change in technology * ...
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... vi. Use of video as a medium: YouTube (allows for long tail content) vii. Internet breaks the bundle, people can buy single songs viii. Give away music for free or very little (Spotify, iTunes, YouTube, Pandora) in order to make money on mega tours, on merchandise, on brand itself ix. Avoid record deals/buy out of record deals x. Capitalize on people paying for the experience, you can’t download or torrent the experience xi. Use of metadatamakes iTunes work (crowd sourcing of track names) c. General Trends: xii. Listening to music at home has become private, go to shows for actual crowd experienceUsed to be records with speakers in order to listen, group activity xiii. Music is now an experience/service/information goodUsed to be a physical commodity 2. How did the internet force the music industry to change? What are some other disruptions? d. It’s broken the bundle, forcing the music industry to try to make money off of live tours and their brand more than anything else e. Other disruptions include share of eye to video games, share of ear to cell phones, DVDs, Napster, Satellite Radio 3. How has free as a price point changed the music industry? f. Pandora/Spotify /Youtube free...
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...Table of contents 1.0 INTRODUCTION .............................................................................................................................. 2 1.1 Background ................................................................................................................................. 2 1.2 Problematics............................................................................................................................. 4 1.3 Limitations ............................................................................................................................... 5 2.0 METHODOLOGY................................................................................................................................. 5 2.1 Primary Data............................................................................................................................. 5 2.2 Secondary data ........................................................................................................................ 7 2.2.1 Research papers ............................................................................................................. 7 2.2.2 IFPI Digital Music Report 2014 ......................................................................... 7 2.2.3 Gerd Leonhard ................................................................................................................. 7 2.2.4 Statistic data ...........................................................
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...Business Project – HMV Chan Ho Yeung 13431908 Context 1. Introduction 2 2. Comparative Analysis of the company’s competitive position in its various markets 3 2.1 PEST 4 2.2 Porter 5 forces 5 2.3 Value Chain 7 3. Considerations for the company’s position in relation to cross-cultural issues 10 3.1 Hofstede Cultural dimensions 10 3.2 Iceberg model of culture 14 4. The company’s position in relation to corporate social responsibility 16 4.1 Carroll’s CSR Pyramid 16 5. Conclusion 21 6. References 24 1. Introduction People who were born in 1990s or before, they should have gone to CD shops to buy CDs and supported their favourite singers. So that, you must know HMV. HMV, everyone knows that it is a CDs retailer basically. HMV opened in Oxford Street London on 20th July 1921. HMV’s full name is “His Master’s Voice”. At that time, HMV was a part of EMI - Electric and Musical Industries. In 1998, HMV was divested from EMI. It needs to especially mention the logo of HMV. HMV’s logo is based on a dog that called Nipper, is listening to a gramophone. In 1921, when HMV had started, they were a company which sold gramophone and also used HMV’s name to produce TVs and radios. After that, HMV did not sell gramophone, they was transiting gradually to sell CDs. Until now, HMV has changed a lot. They are not only selling CDs, they also sell the other products including film, games and headphones. In 1988, HMV has opened their first overseas store in Canada...
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...Marketing Plan Parayem Solutions LTD has decided to launch a new web-based data sharing site with multiple functionality. The product will be new feature on Surreylearn platform. The marketing plan will have a market summery to introduce the market. The potential and key trends of the market will be evaluated. A consumer analysis and industry analysis using Porters Five forces will look into the external factors and the SWOT analysis will examine the idea of Gerraroom. A marketing strategy including a product positioning and a pricing strategy will be comprised. Further a communication strategy consisting of personal selling and events will show an overview of the action plan that the compa 3. Consumer analysis 3.1 Key figures, Trends and movements Almost 65% of the online population (54 million) (Wiki) have used faced book in the past month, (95%) and (74%) between the ages of 16-20, 21-24 respectively in the younger generation category. Youtube comes second with (50%), twitter (23%) windows live (14%), Linkedin (13%), google+ (12%) and Spotify (10%). Moneysavingexpert.com has as many users as Twitter. Spotify primarily a music service provider with users now able to see friends listing habits and share music via face book with 10% of their users spending 14 hours a week using their service. (YouGov.2013) About 25% of Facebook users have said that they use Facebook less compared to 12 months ago, with a further 19% expected to use the site less in the coming year, however...
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...The Coca-Cola Project Role of e-commerce Coca Cola Co uses business to business or B2B. Electronic commerce has fast become a preferred method of doing business for the grocery industry. Major retailers have seen the rewards of enhanced supply chain efficiency and increased business automation. As a result, more major consumer goods companies are starting to use the Internet to do business with retailers. Therefore, Coca Cola being an important SUPPLIER, needs to provide its customers with a fast and reliable way to take purchase orders. Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling partners. Although in most cases they operate as two independent companies, internet makes it easier for them to interact with each other. The Coca-Cola Company’s business is focused on creating and marketing their brands and trademarks, while Coca-Cola bottling companies produce and package the finished beverage products and then sell and distribute them to our retail and WHOLESALE customers Coca-Cola Company's work together with more than 300 bottling partners globally and operate the most extensive beverage distribution system in the world. This Coca-Cola system owns, leases or operates more than 800 plants around the world. Coca-Cola's bottling partners range from international and publicly TRADED businesses to small, family-owned operations. Their governance and management structures are separate from those of The Coca-Cola Company. There...
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...Innovative Models for Doing Business in the Music Industry Table of Contents 1 Introduction 1 2 Reasons for Changes in Consumer Thinking 2 2.1 New Technology Changes the Way Consumers Experience Media 3 2.2 Development of P2P File Sharing 3 2.2.1 Generation 1: Napster 3 2.2.2 Generation 2: The Pirate Bay 4 3 Company Attitudes Towards Changing Business Climate 5 3.1 The Industry Reaction on File Sharing 5 3.2 Technologial Countermeasures 6 3.3 Taking Chances with the New Climate 7 4 Analysis of Different Business Models and Market Conditions 9 4.1 A New Business Model – A Good Business Model? 10 4.1.1 Streaming Media Services 11 4.1.1.1 Spotify 12 4.1.2 Single-song Download Services – Online Music Stores 13 4.1.3 Music Rental Services 14 4.2 Study Case: Tip-Jar - The Radiohead Business Model 15 4.3 Study Case: CD-giveaway - The Prince Business Model 16 5 Conclusions 18 References 19 Introduction The emergence of new media, digital technology, and changing consumer expectations has given the music industry the challenging task of scrutinizing their own business models and methods, forcing companies to revise their business structure and adopt new sources of revenue for the twenty-first century. The main goal of this study was to find out the trends which have affected the industry past years and shaped it towards the present state, reveal how the current climate is, and point out some possible future success factors and new models of...
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...Executive Summary Facebook’s growth in user base and web integration has created a massive platform that reaches over a billion people. Facebook has been successful driving revenue by developing algorithms and application programming interfaces. These revenue drivers turned their social networking platform into an advertising tool, connecting third-party businesses to quality consumers. Although Facebook’s user base and revenue are growing at very rapid rate, there is concern with their future strategy. This paper addresses that concern and the doubt that the revenue streams the company has developed will be sustainable in the long-term. Examining Facebook’s history, competition, financials and target markets will reveal a direction for the future. Recommendations are made for a long-term strategy to diversify revenue streams and maintain year over year growth in profitability through: global markets, emerging technologies and integration. Keywords: Facebook, social networking, technology, advertising, data, Internet user, global market, application development, mobile, beacon Analysis of Facebook to Develop a Business Strategy Maintaining Revenue Growth in the Future Mark Zuckerberg created Facebook in a dorm room at the campus of Harvard University in February 2004. Its initial purpose was to form a social network exclusive to Harvard, allowing the viewing of students’ personal details to the entire student body and to create a platform for communication. Within four...
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...Apple Inc. specialises in development, design and marketing of computers, portable-digital music players and other didgital devices including iPad’s and mobile devices (IPhone). Apple Inc. are also involved in selling multiple supporting software, digital content, third party applications, networking software and services. Apple Inc. predominantly operate from their U.S headquarters in Cupertino, California and involves 72,800 employees (Forbes, 2013). Revenue for APPL in 2013 has risen from $155.97bn in 2012 to $170.87bn in 2013 (Market watch, 2013) which is a 9.6% increase. The objective of the Porter’s 5 forces model is to identify and elucidate the current levels of competition existing with a market, by examining what the 5 forces involve. ‘The model therefore provides a detailed and nuanced picture of the industry and to make an in-depth analysis with an idea of what factors one can try to influence in order to create optimal conditions for one’s business and the industry” (P.K. Faarup, P113, 2010). Threat of new entrants High levels of competition currently being practiced in the PC and mobile industry make it difficult for potential competitors to enter the market. Unlike many companies Apple inc. has secured brand loyalty from customers by focusing on product innovation and, research and development. Another way apple has secured its brand loyalty is by creating an emotional connection with consumers by embracing the internet and social media to voice what the...
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...Dozent: Prof. Dr. Jens Müller Inhaltsverzeichnis 1. Inhalt 3 2. Apple Inc. 3 3. Erlösquelle iTunes Store3 4. Relevanter Markt5 5. Branchenstrukturanalyse6 5.1 Markteintritt neuer Wettbewerber6 5.2 Verhandlungsstärke der Abnehmer6 5.3 Bedrohung durch Substitute7 5.4 Verhandlungsstärke der Lieferanten7 5.5 Wettbewerb innerhalb der Branche7 6. SWOT Analyse7 6.1 Strengths8 6.2 Weaknesses8 6.3 Opportunities8 6.4 Threats8 7. Business Model Canvas9 7.1 Value Proposition9 7.2 Customer Relationship9 7.3 Channels10 7.4 Customer Segments10 7.5 Key Activities10 7.6 Key Resources11 7.8 Key Partners11 7.9 Cost Structures11 7.10 Revenue Streams12 8. Fazit13 1. Inhalt Im Rahmen der Vorlesung „Medienfinanzierung“ habe ich mich dazu entschlossen, in Zusammenarbeit mit meiner Kommilitonin Lara Winkler eine präsentierende Darstellung über die Medienfinanzierung des iTunes Stores zu erarbeiten und anschließend selbstständig eine Hausarbeit auszuarbeiten. Ziel dieser Arbeit ist die Beantwortung der Fragestellung, ob der iTunes Store auch in Zukunft die Vorreiterposition der online Distribution im audiovisuellen Sektor innehalten wird. Hierzu gehe ich zu Beginn auf das Unternehmen Apple an sich ein. Anschließend beziehe ich mich konkret auf die Erlösquelle iTunes und gehe auf den relevanten Markt ein. Mit Hilfe der Porters Five Forces bestimmte ich fortführend die Branchenattraktivität und erarbeite mit der SWOT Analyse eine Positionierung durch die Bestimmung der internen...
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