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Passion for Music: The Case of Spotify

In: Business Model Pioneers

Author

Listed:
  • Kai-Ingo Voigt

    (Friedrich-Alexander University Erlangen-Nürnberg)

  • Oana Buliga

    (Friedrich-Alexander University Erlangen-Nürnberg)

  • Kathrin Michl

    (Friedrich-Alexander University Erlangen-Nürnberg)

Abstract

The powerful changes in the music industry since the launch of the MP3 format in the early 1990s brought both benefits to consumers, and angst to the industry players, since music became extremely easy to share. The major record companies suffered huge losses, as a series of illegal file sharing websites, also referred to as peer-to-peer-systems, emerged, Napster being one such example. Spotify launched its online platform in 2008, with the aim of becoming a worldwide alternative to illegal music sharing. The company is part of a group of evolving music streaming businesses, which experiment with different revenue logics and customer approaches. The business models based on subscriptions and freemium offers address an audience with shifting preferences, from owning music to being able to access music conveniently, fast, and regardless of location. Although Deezer preceded Spotify as the first freemium music provider, the latter distinguishes itself through the variety in titles and playlists, usage simplicity, close contact to social media and commitment towards long-term growth.

Suggested Citation

  • Kai-Ingo Voigt & Oana Buliga & Kathrin Michl, 2017. "Passion for Music: The Case of Spotify," Management for Professionals, in: Business Model Pioneers, chapter 12, pages 143-155, Springer.
  • Handle: RePEc:spr:mgmchp:978-3-319-38845-8_12
    DOI: 10.1007/978-3-319-38845-8_12
    as

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