Business University Turība
Faculty of Business Management
Paula Sāra Jansone
BLL1V1
Spotify
Department of languages
Supervisor: Viola Ēvele
Riga, 2023
What is Spotify?
Spotify is a digital music, podcast, and video
service that gives you access to millions of
songs and other content from creators all
over the world.
Spotify’s history
Founders
In 2006, Martin Lorentzon and Daniel Ek, two
Swedish entrepreneurs, came up with the idea
for a music streaming service that would be
easy to use and offer a wide variety of music.
The initial idea was to create a platform that
would allow users to stream music for free, but
with the option to pay for added features.
Martin Lorentzon and Daniel Ek
The meaning of 2008 for Spotify
• It launched with a free service for its music
subscribers but with advertisement;
• Users could upgrade to $9.99 per month with an ad-
free subscription;
• Managed to have licensing deals with Universal
Music Group, Sony BMG, Warner Music Group, and
more.
First official Spotify’s version - 7 October 2008
The meaning of 2009 for Spotify
• Spotify expanded to the UK, France, and Spain and
reached approximately 6 million songs on its
platform
• Apple allowed Spotify to be in the App Store
• Mark Zuckerberg agreed to a partnership between
Facebook and Spotify - upgrade that enables
subscribers to connect Spotify to Facebook
The number of subscribers in different parts of the world are growing rapidly,
and because of its effective promotional activities
600
500 Subscribers in 2006-2023
(in millions)
400
300
200
100
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Last official Spotify’s version (31 August 2023)
PROS AND CONS
POSITIVES NEGATIVES
• Provides a large music catalog; • Free plan of Spotify has limitations;
• Offers a free-tier subscription; • Song can't be downloaded even with the
• Allows Premium users to download Spotify Premium plan;
music & podcasts for offline • Lack of Hi-Fi and Low Sound Quality;
streaming; • Limits to downloading songs.
• Simple to use;
• Compatible with various platforms.
Features Spotify Premium Spotify Free
• $10.99 for Premium Individual
Cost • $14.99 for Premium Duo Free
• $16.99 for Premium Family
Ad free listening Visual and audio ads
Ads
Full access, with advanced releases Full access, but you might have to wait
Music library two weeks for new releases occasionally
On-demand playback on all devices Limited to shuffle mode on mobile
Playback controls
Full access Full access
Discovery features
Full access You can only download podcasts on
Offline listening mobile
Up to 320kbit/s Up to 160kbit/s
Sound quality
Friend activity, Collaborative playlists, Friend activity, Collaborative playlists,
Social features share features, Group sessions Share features
Spotify Wrapped, Lyrics, Play local Spotify Wrapped, Lyrics, Play local files
Additional features files, AI DJ
Benefits of uploading music to
Spotify as an artist
• Reach a global audience With over 320 million active users
• Build your fanbase;
• Earn money from your music;
• Gain valuable insights;
• Share updates with fans;
• Keep control of your music.
Spotify’s Mission Statement :
“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.”
Future plan for Spotify
Spotify has recently announced that it will be expanding its service
into 85 new markets, which will increase its potential user base by
over 1 billion people. This market expansion adds value by allowing
Spotify to gain market share in emerging markets with the potential
of significant user growth.
Goal for Spotify
• to revolutionize all of audio and become
the world's number one global audio
platform;
• reach one billion listeners by 2030;
• generate $100 billion in revenue annually
with a 40% gross margin.
Conclusion of Spotify
Spotify's business model has opened a blue ocean and created an
offer favorable to customer and advertisers alike; its business
model is simple and sophisticated aiming at some core functions
to provide access to a large music database for the masses a need
on the market for years.
