Spotify Intro and Swot Essay

618 Words Jan 25th, 2016 3 Pages
Intro to Spotify
Spotify is a revolutionary software which allows its users to stream millions of songs on demand. Users can access music on computers, mobiles, tablets, cars and gaming consoles. Spotify was launched in 2008 by the Swedish entrepreneur Daniel Ek. Since its launch in 2008 Spotify has grew rapidly, available in 58 markets, upwards of 75 million active users of which over 20 million are paying subscribers, all with access to over 30 million songs. Subscribed users pay a fee of £9.99 a month which allows for ad free listening, highest quality audio and it allows the user to create and download playlists for offline listening.
Each time a user streams a song Spotify pay the rights holders royalties. Currently Spotify are
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This competition adds to the pressure of Spotify keeping and growing the amount of paying subscribers. I see this as the main threat because users are more likely to leave now there are other options available within the market. If a new streaming service was to appear on the market offering more money for its artists, if Spotify are not careful they may find themselves in a downward spiral loosing artists, investors and most importantly subscribers.
On the other hand, Spotify have the advantage of being the most talked about streaming service and arguably the most popular. This works in Spotify’s favour because it makes them stand out from other competitors. This comes with the opportunity to increase revenue, continue to develop and improve its software and potentially gain more artists.
Technology is constantly improving in todays market allowing for wider access to online streaming and ease of use to suit all abilities. With younger people now able to access this technology more so than when Spotify launched in 2008 only further widens Spotify’s target audience. Although technological developments can work in favour of Spotify it can also be seen as a threat, in order to be a market leader Spotify need to be the quickest and responding to change, but with Apple being a giant in the technology market Spotify will struggle to respond faster than Apple. It

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