Introduction Spotify is one of the biggest players in music streaming industry. Since its public launch in 2008, Spotify has grown significantly having more than 6 million subscribers of its 24 million active users in 32 countries on 4 continents, as of October 2013. [1] Business model Spotify is on-demand streaming music player. After registration and downloading the desktop application user gains access to more than 20 million songs that are currently available on Spotify [1]. The main characteristic of Spotify’s streaming service is that it does not sell music, but it gives access to it. Streaming digital music is based on agreements with content owners - record labels, digital distributors, aggregators and publisher collecting societies, to whom Spotify pays out royalties [2]. Without these agreements there would be no music to stream. Basically, Spotify has an intermediary role as it distributes music content from right holders to listeners. Spotify is operating on “mixed advertising/freemium business model”. The freemium business model is based on idea that the company offers simple and basic services for free for the user to try and more advanced or additional features at a premium [3]. One important role in Spotify’s business model is having advertisers who generate revenue that is used to finance costs of free subscription. In other words, without ads, there would be no free music. Spotify’s users are presented with several options of subscription, which differ from country to country. Right now, users in UK can choose from these three options: • Spotify Free This option is completely free and after creating an account, users are enabled to listen to music on their computers as much as they want during initial 6 month... ... middle of paper ... .../www.androidpit.com/itunes-radio-spotify-google-music-service [Accessed at 3 December 2013]. [23] Kniberg, H. and Ivarsson, A. (2012), Scaling Agile @ Spotify with Tribes, Squads, Chapters & Guilds [online]. Available at: https://dl.dropboxusercontent.com/u/1018963/Articles/SpotifyScaling.pdf [Accessed at 3 December 2013]. [24] Titlow, J. P. (2013). 6 Million People Pay For Spotify - Is That Good Enough? [online]. Readwrite. Available at: http://readwrite.com/2013/03/13/spotify-six-million-paid-subscribers-growth-quick-enough#awesm=~ooGnd8WPWQ88er [Accessed at 3 December 2013]. [25] Newton, Casey (2013), Last man streaming: Spotify's $250 million war chest makes it the music company to beat [online]. The Verge. Available at: http://www.theverge.com/2013/11/22/5134598/last-man-streaming-spotifys-250-war-chest-makes-it-the-music-company [Accessed at 3 December 2013].
The Web. 26 Feb. 2014. http://www.theguardian.com/media/2012/oct/10/music-streaming-songwriters-youtube-pandora>. Luckerson, Victor. The "Business & Money" Business Money Revenue Piracy Down Has the Music Industry Finally Turned a Corner Comments.
People get into their cars and listen to music, you walk into a shopping center and they are playing music; walk into a restaurant and they are playing music too, people listen to music in their work place as well. Runners listen to music as they exercise, you can even listen to music while you are sitting on the dentist chair. Everybody listens to music! Everywhere at anytime! Try to go on line and among other links on Travel, Stock Quotes, Sports or Entertainment, you’ll find a link on Music. There are so many companies that advertise music on line. Every day mass emails are sent that offer music on line. Did you know you can get 12 CDs for only one penny ? All you have to do is join one of the online music distributors : it doesn’t matter whether is BMG or Columbia House, the ‘package’ is the same. It doesn’t matter either if you are in the United States or not, they deliver internationally! Music is not a necessity but everybody is using it.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
Traditional (AM/FM) Radio - it is currently free, but only offers a homogenous shallow play lists with medium audio quality.
Sam, 2013, ‘Electronic Dance Music Industry Reportedly Valued at $15 – $20 Billion’, The Frontliner, 23 September, viewed 18 Mars 2014, .
XM Radio. Sirius’s direct competitor in satellite radio service is XM Radio, the only other FCC licensee for satellite radio service in the United States. XM Radio broadcasts certain programming that we do not offer. XM Radio service is also offered as an option on various car model brands, certain of which do not also offer SIRIUS radios.
Spotify is an on-demand music streaming service that provides a two tiered service to its users. The free service allows users to listen to any song on demand within the application’s music catalogue, but with the presence of ads. The premium service, however, is completely ad free. Launched in 2008 in Sweden, Spotify has grown and currently has over 24 million active users. (Sisario, B) As a result of several deals struck with EMI, Sony, Universal, and Warner Music Group, Spotify currently holds a music catalogue of roughly 20 million songs.
An “analyst” was quoted in the case (in 2002) as saying that “people will pay for music on the Internet, eventually.” This person was skeptical of the willingness of consumers to pay for
...his since they make money for licensing the music for the streaming services. Labels are embracing the streaming services since this allows another way for making revenue in a not so strong music economy.
Spotify is one of the most popular streaming services. And since its breakthrough, access to music have never been easier – just type in the name of an artist or a song and press play. The advantage of it is that listeners gets to listen to their wanted music instantly and for free and artist gets paid royalties. But since spotify’s big breakthrough there has been big debates if free music streaming is going to kill the music industry or if it’s going to help it.
When it comes to the music industry, an artist makes a song, the label sells the song and then the listener buys it? In the world today, the music industry is knowledgeable of digital downloads, music videos, file sharing, and now social media. Social media is the voice of an individual and captures joy, emotions or thoughts in pictures, tweets or status updates. It is a reachable space that is used to keep in touch and to reach out. Social media allows listeners to shares their favorite artists, post their favorite songs and really created a genuine connection with the artists. The music industry has changed because social media is a tool needed to connecting with the listeners. Social media is necessary to maintain a career in the music business.
Consumers rely on their smartphones and laptops to listen to music on-demand. Although there are many music streaming companies, Spotify was one of the first to let consumers access millions of artist without buying individuals songs or albums. With Spotify, consumers pay for a premium subscription that allows access to every artist, album, and song within their library of
People pay low subscription fees to streaming services, and as a result of this, listeners can be exposed to new artists and help these artists become popular (“Music Industry”). New artists are exposed to more people as streaming services often increase the amount of artists that people listen to. While streaming services do result in more exposure for an artist, that’s where the benefits stop. One of the issues with streaming services is payment issues. "Public relations missteps in the early 2000s kept many musicians from speaking out about economic issues, artists and executives said... But the shift toward streaming in recent years has prompted many musicians to investigate the changes in the business and comment online (Sisario)." Artists are not being paid much for providing their music to streaming services, but these issues and artist protests are being ignored by executives of the services until a high-profile artist makes the wage disparity public. "Streaming services pay a lot less than downloads, with the artists receiving a fraction of a cent per play on the service. Newer artists could struggle with the level of payments offered by the services, opponents have argued (O’Brien).” Hardworking artists are not receiving as much money from streaming services as they did from people purchasing their albums. This
Listening to music for free is the best thing in the world, honestly, without paying for something is better than anything. Music to some-people is a way of life, why should they pay for music when they can download it for free. If you download a song off the internet, you’ll have your favorite song in the palm of your hand, charge free! You can save that money that you won’t spend on a few songs or albums and use it for something more important. “Free music downloads could be a solution to our attempts to scrimp and conserve in these rough financial situations” says Frank Castle from Article Alley.
The music industry started in the mid 18th century with Wolfgang Amadeus Mozart. Through the decades there has been a great increase in this industry; however, the revenues for this industry have declined by half in the last 10 years. This has been caused by music piracy, which “is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent” . After 1980’s, when the Internet was released to public, people started to develop programs and websites in which they could share music, videos, and information with...