1.
Spotify
dipanjan

2.
Spotify’s mission is to unlock the potential of
human creativity—by giving a million creative
artists the opportunity to live off their art and
billions of fans the opportunity to enjoy and be
inspired by it.

3.
What problem does Spotify solve?
Problem: Access to Music

4.
Spotify – the product
digital music, podcast, and video
streaming service
Spotify Free
Spotify Premium
Devices
Shared across devices easily
Playlists
Recommends music and build’s
playlists according to user’s taste

5.
Persona 1
 Lucas
 20-year-old college student
 Needs music while studying and while commuting to and from
classes
 Has specific taste in music
 Does not always have time to track his favorite artists to know
when they release their new songs/albums
 Needs an easier way to have access to what his friends are
listening to

6.
Persona 2
 Keshav Gupta
 AKA Te Kav
 Amateur DJ/Music producer
 Has phenomenal taste in music
 Friends are always asking him to make them mixtapes (as if it’s
the 90s)
 Would love to share his playlists to get himself popular with the
local crowd

7.
How does Spotify solve these problem?
 Services offered by Spotify
 Social aspect of Spotify
 Sharing features of Spotify

8.
Company
Information
 Founders: Daniel Ek and
Martin Lorentzon
 Small startup in Stockholm,
Sweden
 Built in response to the piracy
problem

9.
2006
Founded in Sweden by Daniel Ek and
Martin Lorentzon
2013
Spotify acquires The Echo Nest for
their machine learning algorithm
2014
Spotify hit 40 million listeners and 10
million subcribers
2015
Spotify expands into podcasts, video
streaming and news radio
2018
Spotify goes public
T I M E L I N E S L I D E

10.
Business Model
 FREEMIUM business model
 Main source of revenue is
subscription to premium
services
 On the free platform, Spotify
earns money through
advertisements

11.
Financials
 Spotify had a total revenue of $5.259 bn USD in 2018
 Spotify has a market cap of $24.89 bn USD as on Nov. 2019
 Spotify Revenue generations
A free advertisement-supported tier
A paid subscription premium tier

12.
Financials

13.
Financials

14.
Secret Sauce

15.
What’s hot?
 Spotify Connect – between various logged in
platforms
 Discover new music
 Personalized music
 Economic use of data on cellular
 Compatibility with navigation system

16.
Competition

17.
Prediction

18.
References
 https://www.investopedia.com/articles/investing/120314/spotify-makes-internet-
music-make-money.asp
 https://finance.yahoo.com/quote/SPOT/
 https://fourweekmba.com/spotify-business-model/
 https://www.statista.com/statistics/244990/spotifys-revenue-and-net-income/
 https://investors.spotify.com/financials/default.aspx
 https://www.fastcompany.com/90205527/the-definitive-timeline-of-spotifys-critic-
defying-journey-to-rule-music
 https://newsroom.spotify.com/company-info/
 https://en.wikipedia.org/wiki/Spotify#Business_model

19.
Questions?