18. Founded 1M
in Sweden Launch users
2006 Oct Mar
2008 2009
19. Founded 1M Mobile
in Sweden Launch users app
2006 Oct Mar Sep
2008 2009 2009
20. 3M
active
users
1.3M
subscribers
Founded 1M Mobile U.S.
in Sweden Launch users app launch
2006 Oct Mar Sep July
2008 2009 2009 2011
21. 3M 5M
active active
users users
1.3M 2M
subscribers subscribers
Founded 1M Mobile U.S. Facebook
in Sweden Launch users app launch integration
2006 Oct Mar Sep July Sep
2008 2009 2009 2011 2011
22. BUSINESS MODEL
Spotify Open Spotify Unlimited Spotify Premium
Free $4.99 / month $9.99 / month
No adds
Ad-supported No adds No limits
Limited tracks/month No limits Offline
Mobile
24. DIRECT SALE STREAMING RADIO
iTunes Rhapsody
MOG
last.fm
Pandora
CD Rdio
Vinyl Napster
STORAGE PIRACY
Google Music RapidShare
Amazon Cloud Drive Grooveshark?
Apple iCloud
30. IT’S SOCIAL
Sharing playlists
Facebook integration
31. EXCLUSIVE RELEASES
U2’s No Line On The Horizon in Jan 2009
Alicia Keys’ The Element of Freedom in Dec 2009
R.E.M.’s Collapse Into Now in Mar 2011
...
34. FREE USERS
Although Spotify has 20% conversion rate (freemium models usually have 5-10%)
Spotify still has to pay for licenses
(e.g. in UK: 0.085p per streamed track, or 10.5% of your revenues, whichever is greater)
Average user listens to 70 minutes / month (2009)
44. THANK YOU
QUESTIONS?
This presentation was proudly created while listening to Spotify
45. PHOTO CREDITS
(Spotify logo) http://www.spotify.com/us/about-us/press/images/
(Spotify application) http://www.spotify.com/us/about-us/press/images/
(abstract green) by Kevin Dooley http://www.flickr.com/photos/
12836528@N00/2853368756/
(race) by Oberazzi http://www.flickr.com/photos/42788859@N00/318947873/
(questions) by sickmonk http://www.flickr.com/photos/43013588@N03/5903272581/
(dog&gramophone) by Cea http://www.flickr.com/photos/33255628@N00/5522477000/
(baby) by TedsBlog http://www.flickr.com/photos/77154962@N00/43433855/