Our (my) presentation is about Spotify Marketing- one of the world’s fast growing music streaming service. During my presentation I (we) will discuss: the history of Spotify; expansion; Spotify Music market; Spotify Customers and of course some recommendations towards Spotify’s marketing.
Slide 1: Introduction
Over the past few years, the digitization of music has transformed and how the music is produced, distributed, promoted, and consumed towards its marketing plan its strategies through organization. The revolution in digital music has full development with buying and playing music online is totally changed through digitalization. One of the major benefits of the digitization of music is to optimization of costs: costs means both for costs associated with the disc and production costs. In fact, in the CD's price are included prices of the producer, the distributor of the disc itself. Digitization provides also a WIN / WIN tactic (lower prices for consumers, higher profits for the artist).This also controls the issue with overproduction and underproduction of the album.
Slide 2: Spotify
Spotify is one of the notable services of digitalization, which provides an easy access to music. Spotify is a commercial music streaming service and provides digital rights -restricted content from record labels such as Warner Music Group, Universal, Sony, EMI.
Slide 3: History of Spotify
Spotify is private Swedish company which was founded in 2006 and its headquarters based in United Kingdom. Officially was launched in October 2008 by Swedish startup Spotify AB.
Slide 4: Expansion of Spotify
Spotify allows music to be browsed and searched by album, artist, genre, playlist or record label. Therefore over the last few years its booming industry as of September 2010, the service had increased 10 million users including 2.5 million users/customer with paid subscription which is increasing day by day through its new innovation, ideas, plan and marketing strategies towards digitalization.
Slide 5: Spotify Music Market
Spotify has very competitive market and in addition to a legion of established competitors, including Pandora, iTunes Store's Apple and new rivals like Amazon and Google. Spotify also faces the same record industry opposition who has repeatedly attacked digital music services rivals with litigation and bad press.
Slide 6: Spotify Strategies
Spotify has a the design of a business model that guarantees revenue streams for publishers of music, as well as the same options open-source program for users who were attracted to illegal programs (prior to Spotify) as Napster and LimeWire. Spotify has managed to bridge the gap and provide a service that remains is 100% legal option, which is attractive to millions around the world. This all allows easy access to favorite songs and artists.
Slide 7: Spotify Customers
Spotify has reeled in 6 million paying subscribers out of its 24 million total listeners. It’s true and the company is growing fast! Spotify added 1 million new subscribers over last 3 months. There are three different types of Spotify account: Spotify Free, Spotify Unlimited and Spotify Premium. Naturally, depending on the plan that the customers choose, they will have
Several advantages, but offering a free option-award, Spotify hopes to encourage users are free to convert to paying customers. According to a source, the conversion rate from free to pay is about 25 percent.
Slide 8: Recommendations
Firstly, Spotify should become more artists-focused, the interests and opinions of the artists must be sought and taken into account. For example, Spotify could share with demographics and geography of the artist who stream their music: this information can be used for marketing purposes and touring purposes. Second, Spotify should start a campaign to sell their service in America. Finally, it must be storage and editorial content, including any links to the bands website and social media pages, as well as a third-party site, which Tracks can be purchased is a start. Spotify should have "dedicated staff”, whose work is direct fans to new music.
