Technology Analysis: Spotify and the Music Industry

3195 Words7 Pages

Introduction

It’s probably not feasible to avoid streaming music services nowadays. Every smart phone on the market is able to operate numerous music streaming applications, ranging from radio-style streaming, on-demand streaming, and even cloud-streaming. Smart TVs come equipped with Spotify, Pandora, or Rdio. AT&T partners with Beats music to offer a unique on-demand music streaming service with playlists complied by DJs. It seams that with the advent of Wifi hotspots and high-speed mobile Internet services, music streaming is becoming more and more a part of mainstream life. Spotify has been in the spotlight within this particular segment of the streaming industry ever since its introduction to the United States in 2011. (Roose, n.d.)

What is Spotify?

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.

As of 2013, Spotify is available to its users on Android devices, Apple’s iOS (iPhone and iPad), Roku, BlackBerry, Windows desktop, Mac OS X, Linux, TiVo, and various smart TVs. (See Appendix A) When using the Spotify desktop client, the software actually allows the user to select their iTunes music library and have it imported from iTunes over to Spotify. The user then has the option to synchronize his/her music with a mobile device. (...

... middle of paper ...

....com/2014/04/30/business/media/spotify-teams-with-sprint-on-a-mobile-music-plan.html

Spotify’s Time. (n.d.). Music Business Journal Berklee College of Music RSS. Retrieved May 21, 2014, from http://www.thembj.org/2014/05/spotifys-time/

Team, T. (2014, April 23). Pandora Earnings Preview: Profitability Will Continue To Improve. Forbes. Retrieved May 21, 2014, from http://www.forbes.com/sites/greatspeculations/2014/04/23/pandora-earnings-preview-profitability-will-continue-to-improve/

Appendix A

Spotify’s Mobile Availability

Source: cdn.com

Appendix B

Brief Evolution of Spotify

Source: Spotify.com

Source: musicindustryblog.com

Appendix C

Spotify Service Comparison

Source: BusinessInsider.com

Appendix D

On-Demand Streaming Music Services Comparison

Source: cdn.com

Open Document