Spotify - Company Presentation

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2010-06-18

Making money in a world of free

Group 15
Adam Hjorth 7081209027

John Andersson 7081209042, Elisabet Edner 7081209032, Jonatan Ehn 7081209033, Jakob Johansson 7081209045, Jonathan Lam 7081209046, Jenny Wang 7081209044

TABLE OF CONTENTS
TABLE OF CONTENT ........................................................................................................................................... 2 WHAT IS SPOTIFY? ............................................................................................................................................. 3 REVENUE MODEL............................................................................................................................................... 3 THE VALUE CHAIN.............................................................................................................................................. 4 Primary Activities ....................................................................................................................................... 5 Supporting activities .................................................................................................................................. 5 FIVE FORCES....................................................................................................................................................... 6 Competitors ............................................................................................................................................... 6 Substitutes ................................................................................................................................................. 6 New Entrants ............................................................................................................................................. 6 Suppliers .................................................................................................................................................... 7 Customers .................................................................................................................................................. 7 INFORMATION TECHNOLOGY............................................................................................................................ 8 CONCLUSION: SPOTIFY IN THE PAST, PRESENT, AND FUTURE .......................................................................... 8

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WHAT IS SPOTIFY?
Spotify is an online music service which makes it possible to legally stream music with peer-to-peer technology. To use the service, users must download a program compatible with Windows and Mac OS X. Its business model is to aggregate content from rights holders, distribute it to consumers through a technical platform, and generate revenue through users who choose either a free ad-funded service or a subscription service. The goal of Spotify is to help people listen to whatever music they want, whenever they want, wherever they want. Spotify creates value in its service, which give users convenience and simplicity. Consumer save time with Spotify and have 24-hour access anywhere. In addition, users can interact with other users who share similar music tastes. The company is relatively new on the market, it was founded 2006 by the Swedish entrepreneurs Daniel Ek and Martin Lorentzon and launched for public access in October 2008. From that point, Spotify has expanded from a Swedish market to a market covering several European countries. It now has its eyes on the global market. There are four different versions of the music service called Free, Open, Premium and Unlimited. Spotify Free (invite only) is as the name implies – for free, but comes with commercials in between songs. Spotify Open is free as well, but there is a limitation of twenty hours per month. To get access to Spotify Premium, users need to pay a monthly subscription fee of 99 SEK, and will gain privileges such as ad free music,...
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