2. Company Overview
2
3
4
5
Launched in 2008 in Stockholm, Sweden1
Service Models: Freemium & Premium
Social & Interactive Features
Partnerships & Competition
Available in 58 markets
3. SWOT ANALYSIS
Quality
Partnerships
Variety
R&D
Strengths Weaknesses
Excessive cost for freemium
model
Challenges to move customers
to paid subscription
Challenges to attract artists
Opportunities
Streaming Market forecast to
become mainstream
Partnerships
Increasing Consumer Engagement
Growth Potential
Threats
Aggressive Competitors
Varying price structures
Artists’ backlash
Cannibalization
Piracy
Digital Stream Capture Technology
Experience
Adaptation
Ease of Use
Accessibility
Social & Interactive Features
Peer-to-Peer Technology
4. Qualitative Analysis:
Social Media Monitoring
Our Social Media Monitoring Tool of choice
was Topsy and our Social Media Platform of
choice was Twitter. A total of 1816 tweets
were analyzed
Coding Guidelines
Satisfaction 1=mentioned 0=not mentioned
Artists 1=mentioned 0=not mentioned
Songs and Playlists 1=mentioned 0=not mentioned
Competitors 1=mentioned 0=not mentioned
Collaborators 1=mentioned 0=not mentioned
Positive/Negative 1=Positive 0=Negative
6. Qualitative Analysis:
Social Media Monitoring
•"My spotify discover weekly
playlist is so on point this
week. It's like they read my
mood and sent song that
applied to what I feel."
Fans praising their
favorite songs, albums
and playlists
•#NewMusic
@DaReal_BoogiieB "Doing
Something Right" on
#Spotify
http://spoti.fi/1iXXHM2
Spotify Users/Artist
promoting their new
singles, albums and
playlists
•"Mad that Taylor swift isn't on
spotify"
•"ISIS exists because Taylor Swift is
not on Spotify"
Unavailability of
certain artist on
Spotify
•who else is extremely irritated with
the savers commercial on Spotify?
🙋🏼
•I'm salty at the fact the Democratic
Debate can go 40 minutes with no
commercial yet Spotify can't even
go 20
Spotify users
complaining about
ads.
8. Who where our participants?
0
20
40
60
18-25
26-35
70.8%
29.2%
#ofParticipants
Age Group
45.80%54.20%
Male
Female
0
10
20
30
40
Yes, Freemium
user Yes, Premium
user No, use other
type No, don't use any
type
31.9%
45.8%
13.9%
8.3%
#ofParticipants
9. Findings
Spotify
Users
• Overall participants consider
Spotify to have an easily
accessible platform.
• The leading factors driving
users’ satisfaction are the
ability to create playlists and
the ability to listen to music
with no interruptions (Premium
Users Only).
• In addition, our analysis reveals
that users are likely to
recommend Spotify to a
friend/family member.
10. Freemium & Premium Users
Likely to be
Female
Use it less
frequently
Create Playlists
add more value
Don’t prefer it
over others
services
Do Not
Consider
Loyal
Would
recommend
it to family
& friends
Are
highly
satisfied
Likely to be
Male
Use it more
frequently
No Ads
add more value
Prefer it over
others services
Freemium Premium
11. Upgrade to a Premium Account
Listen to music offline
Lower Price
No Interruptions (Ads)
12. Everyday Users vs.
Not Everyday Users
Spotify's additional features adds
more value to their experience.
Are more satisfied with the service.
Would recommend Spotify to a
friend/family member.
Consider Spotify to be a
user-friendly platform.
13. High Income vs. Low Income
• High income users
(> $100,000) consider the
ability to create playlists
adds more value to their
experience than low
income users (<$50,000).
High Income
• Low income users
(<$50,000) consider the
additional features adds
more value to their
experience than
High income users
(> $100,000).
Low Income
15. Recommendations
What
now?
Spotify users are likely to recommend the service to friends
and family members. An opportunity for Spotify to create
awareness is by using word of mouth.
Spotify should aim to enhance the variables that are likely to
increase the value added of its premium service. Features, such as,
the speed of stream and ability to create playlists, can be further
enhanced for premium users only in order to attract new users.
Spotify should concentrate efforts on enhancing its additional
features to increase the loyalty of Premium users, who prefer
Spotify over other online music streaming services, but do not
necessarily consider themselves loyal to Spotify.
16. Recommendations
What
now?
Spotify should continue offering discounted prices to college
students and families.
Spotify should analyze competition to identify the factors that
might be encouraging customers to use other online music
streaming services. Indirect competitors such as Pandora and
SoundCloud should not be underestimated.
By creating even more partnerships and joint ventures with
other popular interactive platforms, such as Forever 21 Mobile
App, and social media channels such as Periscope, Spotify
should be able to increase awareness and expand its network.
58 markets, 75 million active users and over 20 million subscribers.
The leading factor driving Spotify’s satisfaction is its interactive platform allowing customers to share, create and discover playlists.
The absence of certain popular artists/bands and the lack of music variety affect Spotify satisfaction. Occasionally driving customers to switch to other substitute services such as the leading competitor Apple Music.
The integration of other social media platforms like SnapChat, Facebook and ChromeCast, creates a multi-platform web that greatly enhances Spotify’s awareness thus adding value to its services.
Moving users from the freemium to the premium subscription is a challenge, due to the fact that the majority of freemium users have already achieved high levels of satisfaction.
Spotify depends heavily on the use of social media platforms such as Facebook and Twitter, to identify trends in new music, create awareness and distribute music.
The majority of the resistance towards Spotify services derived from artists, who currently believe that they are being poorly remunerated for their art, and music industry major record label representatives who believe Spotify will eventually drive the Music Industry to bankruptcy.
The leading factor driving Spotify’s satisfaction is its interactive platform allowing customers to share, create and discover playlists.
The absence of certain popular artists/bands and the lack of music variety affect Spotify satisfaction. Occasionally driving customers to switch to other substitute services such as the leading competitor Apple Music.
The integration of other social media platforms like SnapChat, Facebook and ChromeCast, creates a multi-platform web that greatly enhances Spotify’s awareness thus adding value to its services.
Moving users from the freemium to the premium subscription is a challenge, due to the fact that the majority of freemium users have already achieved high levels of satisfaction.
Spotify depends heavily on the use of social media platforms such as Facebook and Twitter, to identify trends in new music, create awareness and distribute music.
The majority of the resistance towards Spotify services derived from artists, who currently believe that they are being poorly remunerated for their art, and music industry major record label representatives who believe Spotify will eventually drive the Music Industry to bankruptcy.
