Facebook and Spotify

Source: https://news.spotify.com/us/2011/09/21/spotify-and-facebook/

Spotify has collaborated with many companies to build their popularity, and success. One of the very first companies Spotify partnered with, happened to be the biggest: Facebook. After Zuckerberg, the creator of Facebook, tweeted about his love for Spotify in 2010, a year later he, and Spotify expressed that love by officially announcing their partnership. The integration was designed so that Facebook users would easily discover the free, and legal music they could listen to through Spotify. As well as, listening to music directly through Facebook, seeing the music that’s trending with your friends on the “Music Dashboard”, having a music collection on your page, and even making, and sending playlists.

It wasn’t long before Spotify saw the success in accordance to this integration. In that year, Spotify announced that they had attained one million paying subscribers, as well as officially launching in the United States. Spotify, was gradually surmounting their competitors, only three years after their initial startup. This was not only a great addition to Facebook, but it successfully advocated Facebook users to check Spotify out.

Written by: Christine Teta


Stakeholder Challenges

Spotify has quickly become one of the biggest forces within the music industry just in the few years it has been available to the public. It is the world’s biggest music subscription service, with over six million paying subscribers and twenty-four million active listeners. Despite their growing success, they have faced several challenges.

The first being that some of the most famous artist do not want their music to be streamed through Spotify. There are different reasons for this, some being that the payout they would receive would be less than that of CD sales or from radio play. Others think that it only supports established artists, rather than new, up and coming musicians. Another problem for the company is that the royalties paid to artists for their music is extremely costly. It is estimated that 70% of the profits earned by the company is spent paying the musicians. A suggested solution for this is to renegotiate with the artists in order to lower the costs behind streaming the music.

As with any other company, there will be competition within the industry, but it seems that there is a lot in the music business. Apple Music, Pandora, and YouTube are all music streaming sites that provide just about the same service as Spotify. However, they try to be a step above the rest by creating personalized playlists for each individual user. Spotify is also trying to be more innovative out of the fear of losing users from competition by proposing ideas of streaming Netflix-style videos. This also brings new logistical challenges simply because it is so unlike any other business and is a bit of a risk.


Going Public With Their Shares?

According to Tom Buerkle in the New York Times, the $8.5 billion music-streaming service is considering listing its shares directly without raising any new capital, Mergermarket and The Wall Street Journal have reported. Going public is uncommon for a company like Spotify. The reason they may be going public is because they have been losing money of the last few years. However, they just struck a new licensing deal with Universal Music which would lower Spotify’s onerous revenue share if it can attract enough new customers. Paying subscribers have nearly doubled since 2015 to exceed 50 million. Which is good news for Spotify. But, large investors may be uneasy still. The terms of the convertible debt 11-year-old Spotify issued last year also put pressure on it to go public soon. According to y taking their shares to market without seeking new capital, Spotify would provide its backers an easier way to sell while avoiding some of the traditional rigmarole of an initial public offering, including banking fees that can be as much as 7% of funds raised.

Written by: Caitlin Brock

Spotify is paring with ‘Waze’ the navigation app to make driving and listening to music seamless. The two companies have teamed up so that users of the Waze app can listen to Spotify playlist within the app and vice versa with drivers who have Spotify accounts. This partnership allows for users to switch between the apps and browse your playlist in the Waze app. This feature only works when the car comes to a complete stop enabling safety. Although google owns the app ‘Waze’ and google has their own streaming source, Spotify is the world’s leader when it comes to the number of users for music streaming app globally. Adding a stronger strike rate for the integration being used.

Written by: Marjorie Newman

Source: https://techcrunch.com/2017/03/14/spotify-and-waze-partner-to-play-music-and-navigate-seamlessly/

Streaming Wars

Spotify has faced some fierce competition with the development of Apple Music in 2015. However, Spotify still remains the top music streaming service with their 50 million paid subscribes. It took them nearly 8 years to reach that benchmark though. Apple Music has reached 20 million paid subscribes in a merely 18 months. Why though? Daniel Adrian Sanchez’s article, one reason for Apple’s elevated uniques undoubtedly comes from three-month free trials.  It may take some time for those figures to normalize, and Apple certainly faces challenges with churn.  But pound for pound, that ‘free tier’ is pulling people away from mega-rivals like Spotify. Additionally, 71.6% of mobile phone users are iPhone users which would explain why Apple Music’s subscribers have grown so fast. This puts Spotify in a tough spot. How can they continue to be the leader in the streaming wars? They are going to need to figure out strategies to maintain their lead.



written by : Caitlin Brock

Spotify vs Pandora

Due to each service’s massive status, you’d expect both to feature a similar amount of available music. however, this category isn’t even close, easily going to Spotify whose catalog is roughly 20 times larger than Pandora’s. With a music library totaling 25 million songs, compared to roughly 2 million for Pandora, Spotify is the gold standard among music streaming services. Though it doesn’t offer every known song know to man— artists like Taylor Swift and Garth Brooks chose to withhold their music its massive library is an incredibly impressive offering. Moreover, Spotify continues to add new music every week, uploading hosts of new albums the second they drop on either Monday or Tuesday. This feature is specifically useful on when an artist wants to “leak” their music. instantly available for streaming minutes after the leak. This demonstrates  Spotify’s commitment to providing as complete a catalog of music as possible to its users. To Pandora’s credit — despite its meager offering of songs — the service does have a knack for finding vague artists. Because of this, its catalog remains varied and allows users plenty opportunity to discover new music.

Winner: Spotify

Written by Rebecca Bazelais

Sources: https://consequenceofsound.net/2016/02/which-artists-are-still-holding-out-on-streaming/


Spotify limits the content that free users are able to access.

Spotify has signed a few new deals with some record labels, removing some benefits of being a free user. Encouraging Spotify’s 50 million non paying user become music pirates. Spotify is now moving into a higher range where they charge users for premium product therefore those users are the only ones who can listen to prime music. Not only are users who are already paying monthly getting there music offline, their also receiving exclusive access to artist newest releases. Artist such as Taylor Swift, are happy about this because she argues that her music is valuable music and should be paid for. Swift is slightly equating importance and value to the equation. On the other hand, Spotify is concerned about how this change might affect the other half of their users who stream for free currently.

Written by: Marjorie Newman

Source: http://www.hypebot.com/hypebot/2017/04/are-record-labels-about-to-encourage-spotifys-50-million-free-users-to-become-pirates.html


Spotify Debuts its’ First Series

Article: https://news.spotify.com/us/2017/03/29/27473/

Spotify broadens its horizons this year by being apart of a brand new series: Traffic Jams. Starting on April fourth, Spotify and All Def Digital are debuting their original series on Spotify. The concept of the show consists of having a rapper and producer who have never before collaborated, create a brand new song while being driven through LA’s rush hour to the Spotify-All Def Stage where fans will be eagerly waiting to hear the new song be performed live.

This will give attention to artists, producers, and Spotify, especially considering hip hop is the most streamed genre of music in the world. The behind the scenes look of original music being produced will provide a deeper appreciation for the new tracks. This may also promote use of Spotify, since the episodes are available on Spotify under Original Videos. Spotify is now more than just an app to listen to your favorite playlists.

Watch the trailer: https://www.youtube.com/watch?v=kDfONBTKPZc&feature=youtu.be

Written by: Christine Teta

Spotify Partners With Tinder

SOURCE: http://press.spotify.com/us/2016/09/20/spotify-partners-with-tinder-to-swipe-up-the-volume/
This article reveals the news that Spotify has recently partnered with Tinder. Tinder is commonly referred to as a “dating app”. It functions by introducing multiple profiles to the user; “swiping right” (if you like the profile you see), or “swiping left” (if you don’t see yourself compatible with the user). The amount of swipes per day have reached into the billions. Making this an exceptionally good partnership for Spotify, considering the amount of attention the app receives.

The partnership introduces a new aspect to finding your next match while on Tinder. Users are now able to have a song of their choosing play while someone is on their profile (much like MySpace did many years ago), have viewers of their profile preview music clips via Spotify from their top artists, and swipe based off mutual taste in music. Ultimately, Tinder users are now able to connect their Spotify account to their Tinder profile. This offers an entire new characteristic about the people being viewed. It also promotes the use of Spotify by Tinder users and may act as a means of advertisement. Overall, I presume this partnership will only result in more people swiping right for the Spotify app.

Written by: Christine Teta

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