Nowadays, more and more we see the collaboration between the Music industry Players with other Players in other industries. It started decade ago by the collaboration with the Internet industry (such as iTunes), and then recently expanded to the collaboration with the players in the different industries.

1. Music Service Monetization 2.0
“The lesson learned from strategic partnerships in media channel we see in Europe and US
market today can be reference to others.. especially Indonesia, as one of the largest mobile
internet markets, after massive termination of premium SMS directed by regulator last year.”
Service Model and can be bundled with data plan is a file sharing activities was reduced, where
significant point for the Access provider 49 % of those had moved to access the
The digital music mainly has been
to gain more customers, and because music streaming service. The total
segmented into 2 types of consumption
this is the “Access type” consumption revenue of the Label Record companies
model. Both of these models are part of
model, thus it is natural for the user to increased 12%, where the revenue from
broad shift in the current digital music
get access to it across different devices digital grew 84% in 2011.
industry, from the analogue to the digital
(“up-selling” aspect). These are
consumption, as result of development
in the cloud service and network quality,
important to stabilize or even increase The “Direct model”
the ARPU by using data plan adoption This partnership can be seen as the early
as below:
over range of combinations products, model that is run in the digital music
• The “Access model”, provided by expands the Access provider’s position
the Streaming-core service industry, the Partnership 1.0 model. It
in the supply chains, from PC, mobile is set up directly by the main players in
• The “Ownership model”, provided phone, IP TV to Audio system.
by the Download-core service the Music industry (Record
Label/Collecting Society and/or
Indeed, Access provider can compete Aggregator) and other industry fields.
Although the Music download continue for customers not mainly based on the
to grow to 17% worldwide, nowadays Some examples variance:
low price of the offerings, but due to the a) Partnership with Access provider,
we can also see the market demands to attractiveness of the bundled service
accessing the music is toward across e.g. TDC in Denmark, SK Telecom
itself (“cross-promotional” aspect). In in South Korea, Telefonica Group in
multiple channels, platforms, and spawn contrast, in the Download-core case, the
to diverse models. Thus the music alone Brazil, Telecom Italia in Italy, etc.
price competitiveness is highly
should not longer just seen as product, b) Partnership with Consumer
important, and user just download the
but the experiences built around that are Electronic Provider, e.g. Nokia
track then can choose to experience the
the leading to way into new era: (Nokia Music App), Sony (Sony
music in offline mode and/or elsewhere
interactive, social and profitable. It is Music Unlimited in Sony PlayStation
via other devices. Thus, they have fewer
reported the paid-subscription to and TV), etc.
bonds with the service, and loyalty with
Streaming-core service has increased 65 their Access provider.
% worldwide, reached total 13.4 million The “Bridge model”
users. This partnership can be seen as the
Partnership Model Partnership 2.0 model, the current
In the strategic alliance point of view, Nowadays, more and more we see the model that is run in the digital music
the Streaming-core service itself has collaboration between the Music industry. It involves the “bridge”
more ability impact to the Access industry players with different industries. (Service provider) in setting up the link
provider’s core business, compare to the It started decade ago by the between the Music industry and players
Download-core service. This happens collaboration with the Internet industry, in different industry fields. Some
because music is actually beyond as just and then recently expanded to the examples variance:
commodity for the Access provider. collaboration with several other players, a) Partnership with Access provider,
Music is inherently emotional for range from the Mobile device, e.g. Spotify with TeliaSonera in
people, and by using the Streaming-core Consumer Electronic provider, as well Sweden and Finland, Deezer with
service; user spends more time with it as Access provider (ISP, Telecom, IP- Orange in UK and France; Muve
(“stickiness” aspect). The revenue TV operator). All of these bring music Music with Cricket in US; Wimp
from this type service is also generated closer to the consumer, become key with Telenor in Norway, and Canal
via repeatable billing cycles, so the route to the global mass-market Digital in Portugal, etc
Access provider keeps the revenue from distribution. b) Partnership with Consumer
the flow data traffic as customer Electronic Provider, e.g. Rara.com
naturally accept the bundling with The real value of music has potential as with HP in Europe market, Spotify
monthly-billed concept (“recur” game-changer for Access providers, as it with Sonos, etc.
aspect). Thus, the quality of can keep them competitive in the
c) Partnership with Consumer Retail,
experiences, and satisfaction of the market, increase market share and
e.g. Muve Music with Walmart and
service features become huge matter; ARPU, reduce churn rate. Even it is too
Best Buy in US; WiMP with
create genuine bond between customer early to conclude this type of service
Platekompaniet in Norway; JUKE
and the service. These are some of the would be the killer answer of the new
with Media Markt in Germany, etc
keys to reduce the churn rate, because revenue source that the players in the
the service turn as factor that make Internet, Music and Telco industry have
In general, the Music industry actor can
customer stay with their Access been searching for, it is theoretically
see both of these models as powerful
provider. form mutual benefit for parties involved.
alternative to reduce the piracy access,
Sweden can be example of the successful
taking advantage over billing structure
The fact that the Streaming-core service of the recent collaboration. It was
and commercial network footprint as
is delivered in high-end mobile device reported that during 2009, 60% of the
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2. “Spotify and its partnerships have several final touches..makes it different and more
successful compare to other prominent competitors”
digital data delivery channel from the ring tones, ring back tones, etc) is Value- Access provider, expands the values
Access provider. While in return, the added service (VAS), not core of the beyond the traditional boundaries of a
Access provider can use this as Access provider revenue, contributes network into wide range of areas.
opportunity to make differentiation over small proportion to the annual non-
tight competition in their market, as well voice revenue (globally around ~5% by The lesson learned and dynamicization
as dealing with Internet player’s data 2013). Fourth, using this model the from media channel we see in European
hungry Over-the-Top (OTT) services. Access provider has to directly struggle and US market today can be reference to
Meanwhile, for the Service providers (in to compete with Digital retail store from others, e.g. APAC market, especially
the “Bridge model”), which are mostly Internet players (e.g. Apple with iTunes Indonesia, as one of the largest mobile
new/small company running new type and its iPod products). It reaches global Internet, after the massive termination
of business, its tie up with big players consumer, creates trend, and puts off of premium SMS directed by regulator
would significantly add value to gain the Access provider’s customer from last year.
more customers and competitiveness their retail channel.
over hundred competitors, and offers Spotify
strong bargain in dealing with giant There are several fails example of
Spotify is a digital music service
Music industry players. “Direct model” that we can see,
founded in Sweden and commercially
delivered by range types of access
released in 2008. Spotify business works
TDC and SK Telecom are some Access provider worldwide, e.g. Virgin Media
through 2 key customer segments, the
providers that were successful in direct partnership with Universal Music
User/Music listener that is divided into
delivering the “Direct model”. The data in UK, France and Australia market back
several groups and the Advertiser.
shows that TDC has reduce churn rate at 2009, as they were unable to secure
Spotify forms this business by
~50% and by November 2010 have deal with other 3 Major labels. Or,
facilitating its supplier segments and
recorded 250 million downloads from its BSkyB music service fail in UK market
customer segments into multi-side
Download-core music service since even tough it had direct backing of all 4
platform.
launching in 2008, YouSee PLAY. Major and various Indies record labels,
Meanwhile, SK Telecom has ~ 30% due to unable to reach large enough
grow in mobile data revenue, far ahead customer, etc Value Proposition
from its competitors due to its Music Spotify actually does not offer new type
streaming service, MelOn. Moreover, the “Bridge model” model of business in the music industry, as
theoretically has similar effect with the there are already lot of music retails and
The fundamental reason of these “Direct model” on its potential in music service providers that also have
successes was due their value gaining the market share, increases smart the same main offers. However, Spotify
proposition that could not match with phone up-selling with bundled data plan, and its partnerships have several final
their local competitors. In TDC’s case, as well as reduces the churn rate. touches apart from main offers that
its free download offer was huge However, it more makes sense for the make it different and more successful
attractive to Danish market as result of Access provider to use this model, compare to other prominent
successful setting up agreement with instead of creating their own (the competitors. Using its platform and
all Major record labels and Danish “Direct model”), as it offers the strategic alliances with players in the
Indies. While in SK Telecom’s case, the opportunity to the similarly compelling range of industry, Spotify combines the
fact that it has subsidiary company that the service, but with opportunity to gain excellence of seamless streaming
is the largest Record Label in South it quickly and in simpler way, as well as experience, music catalogue size, social
Korea (Loen Entertainment), at reasonable cost. By using this music feature, service availability in
significantly remove the agreement partnership model, the Access provider several devices, product bundling,
complexity with Music industry players can significantly shares the effort on customer and developer community,
and reduce cost to simultaneously marketing and branding cost, as well as etc.
operate the service with appropriate saves time on delivering the service to
update contents. the market. Unlike iTunes and other music services
that forms the business based on
However, there are prohibitive up-front This kind of partnership gives the Download-core, Spotify does not just
costs and significant complexities that Access provider an already established sell product (music retail selling unit),
prevent others to follow, as these and well-known music platform that but also provides service (on-demand
success factors above are not easy to be crucially has had existing deals with the and radio streaming), and as local player.
replicated. First, there are huge efforts Major record labels, compare to the fail Spotify closely resembles the Radio
has to put in releasing the music in the using the “Direct model” that have been model, iTunes model as well as the
product that has enough affordability, faced by some of the Access providers original Napster model, by recognizes
quality, constant content, etc. Second, worldwide. While in return, the Service the validity of copyright and conducts its
there is significant time and cost provider can expand its customer base business accordingly. Apart from those,
consuming for the marketing, branding, very efficiently. Indeed, partnering with Spotify provides access to both the
and high complication in setting up the well-known and right Service major record labels and unknown
agreement with the Music industry. provider would bring extraordinary Artists, whom are not yet commercially
Third, the music as whole (including impacts on the core business of the viable (Indies), by maintaining
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3. “Spotify works differently compare to other similar services as it relies on several
way, makse the music delivered seamlessly to client”
searchable presence from its catalogue,
covers 15 million licensed music
(globally, size and availability varies in
each country). From those aspects
above, Spotify able to build 2 key
resources:
• The music delivery as intellectual
property using “Value mix” model
(music as product and music as
service),
• The information it has about it
users, used for specific target on
marketing purposes.
Convergence of the service across range
of devices is one of major themes in
digital music business. It Spotify is
delivered as downloaded client
application with proprietary protocol,
makes it has much control over the
network protocol as opposed to service
develop as web-based. The application is
built in several platforms, makes it
available in range of devices: the
Desktop clients (Windows, OS X,
Linux), mobile devices (Android, iOS,
Palm, Symbian, Windows Mobile,
Blackberry, WebOS) and consumer
electronics (iPod products, home
stereos). Spotify has device integration
feature between these devices, so user
can manage and sync all the music
contained in the Spotify play lists
to/from iPod, mobile and tablet devices
(iPad), and access those “cloud tracks”
offline, as well as doing download
purchase through several bundle
options.
uses TCP-based communication that development and maintenance. These
Moreover, for the audio bit rate, Spotify guarantee each bit of media stream is costs are funded trough several streams,
uses different rates of OggVorbis, the correctly delivered. However, TCP is as below:
Variable-bit rate (VBR) audio accomplished with timeout and retries
compression format that is unpatented, mechanism. Thus, Spotify is 1. Streaming subscription
make it a well-suited replacement for implemented using peer-assisted Since its commercial launching in 2008,
proprietary audio formats. The standard streaming per track (P2P), not per Spotify has made several price scheme
rate used in the desktop is ~ 160 kbps torrent as used in BitTorrent (only changes; with the last was November
(OggVorbis q5), and in the mobile implemented in desktop version). It uses 2010. It only offers 3 tiers for its
device is ~96 kbps (OggVorbis q3). 3 data sources combination: the Streaming service since then, as shown
Spotify offers feature to its Premium CDN/core streaming servers, P2P and in Table 1. User that has signed before
users to access limited tracks with higher cache, where 8.8% data comes from November 1, 2010 is allowed play
quality in their desktop up to ~320 kbps servers, 35.8% from P2P, 55.4% from maximum 10-hour monthly with 5 times
(OggVorbis q9) and up to ~160 kbps in user local caches. Using this, Spotify / track, and new user was exempt from
the mobile device (~320 kbps for recommends 256 kbps bandwidth and these changes for the first 6 months.
Premium user using iOS device). some caching space. Spotify recently confirm that it has plan
to launch premium family plan, which
Spotify works differently compare to Revenue Model is incentive offering for more members
other similar services as it relies on Spotify’s cost structure are mainly to of the same household to get access on
several way, makes the music delivered address the Copyright usages of its multiple basis and to prevent password
seamlessly to the client (median music delivery to the Music Industry sharing among them.
playback latency ~265 ms). Spotify players, apart from software
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4. “This makes Spotify as largest paid-based subscribers worldwide,
the second largest source of digital music revenue in Europe.”
2. Download purchase build based on 2 prising models: boost Spotify paid-subscriptions user, as
Spotify also build its own music store • The “Freemium Subscription” shown in Graph 1, and also revenue.
with bulk discounts, as shown in Table model, which is implemented to The success factor of this conversion
2. Its platform in range of devices allows subscription bundles: the “Advertising- rate is clearly mainly supported by the
user to synch their music collection, so support” (“Spotify Free”) and features differentiation arrangement that
they can enjoy it in several devices using “premium” bundles (“Spotify Spotify put in its bundling subscription
same account. Unlimited” and “Spotify Premium”) (mobile version, max time-access limit,
• The “Pay-as-you-go” model, which max similar-track limit, offline access,
3. Advertisement is implemented to its download feature etc).
Spotify offers free subscription plan Spotify implement these pricing models
(“Spotify Free”) that is supported based using the “Demand-based pricing” Based on its pricing scheme and its
on audio and graphic advertisement strategy, where it adjust the price subscriber based above, this revenue is
(banners, page takeovers, etc) and sets between countries, follows the perceived analyzed to come ~ 23 % from
partnership with several brands, e.g. value as the central element to set the adverting-supported users and ~ 77 %
Coca-Cola, Chevrolet, Motorola, price. from paid-subscriptions users (mainly
Reebok, The Daily, etc. Using the “Spotify Premium”), as shown in Graph
information that it has about its user e.g. Even tough the exact Spotify annual 2. It is reported that Spotify annual
demographics, location, music genre revenue comes from these streams is not revenue during 2008 to 2010 was
preference, etc), Spotify able to deliver reported clearly, the 20% conversion boosted from ~ $380 thousand to ~ $63
this advertisement in specific targeting rate is far away compare to other million, with total loss ~ $316 thousand
pinpoints, detail tracking and reporting. Internet players, and impressive to to ~ $26 million, mainly to cover the
secure cash flow in long run. The licence payment to the Music industry
From the discussions above, it can be introducing of mobile device feature was players.
conclude Spotify revenue streams are one of key factors that significantly
Market Segment
The expansion strategies that Spotify
resembles are mainly targeted to the
early adopter user, which potentially
drives more benefits in long-term
engagement. Spotify use geographic
segmentation, as same as what
Facebook did in its early years. Its first
commercial launching was in Sweden,
and since then it has been available other
13 countries across the globe (Spain,
UK, France, Netherlands, US, Denmark,
Faroe Islands, Austria, Belgium,
Switzerland, Germany). Spotify also has
variation offer in some market, e.g. the
implementation of “Private beta”
launching model for unknown period of
time. User only can get access to the
“Spotify Free” with invitation, but keeps
the paid-subscriptions opens.
Spotify keeps changing the offers it puts
to its bundling tiers, which also might be
different in several countries, e.g. radio
service available for Free-based users in
US, or no 5-track cap for Free-based
users in several European countries. All
of these strategies are not just mainly
due to copyright settlement with the
Music industry players that work
differently between countries, but also to
help on making the product exclusive
and attractive to its early adopter users.
It happens, as they are exposed to the
service, but unable and/or has limited
access on using it for period of time.
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5. “Spotify has strategic alliances in other industries,
builds channels to deliver its service closer to user.”
Spotify reports to currently have total users able to purchase several months 5. Partnership with Access
10 million registered users (3 million are subscription of “Spotify Premium” plan provider
using paid-subscriptions/ 15 % in retail stores in the Nordic countries Apart from strategic alliance mentioned
conversion rate). This makes Spotify as e.g. Pressbyrån, 7-Eleven, Narvesen, above, Spotify also set up partnership
the Streaming-core music provider with ICA, Rimi, and Coop, just like toping-up with several access providers, both the
the largest paid-based subscribers mobile or buy train ticket, and Service Provider (ISP) and MNO.
worldwide, as well as the second largest introduces the “Gift card” concept. Spotify started its first agreement with
source of digital music revenue in TeliaSonera in Sweden and Finland. It
Europe. 3. Consumer Electronic Industry then also broad this in November 2009
Spotify key activities also to develop its with Hutchison Whampoa (3UK)
Value Network and platform to range of products, extends using tariff with inclusive “Spotify
its capabilities and values. Apart from Premium” subscription bundled with
Competitive Strategy
availability in the computer desktop and 3UK’s first Android handset, HTC
In order to legalize its business, Spotify
mobile phone, Spotify widen its service Hero. The offer comes with £35/month
mainly deal with players in the Music
to other devices, mainly home stereo over 24 months contract, plus upfront
Industry. Apart from that, it also has
(require user to have ‘Spotify Premium” fee £99 for the mobile phone, where the
strategic alliances in other industries,
plan). It is partnering with several package includes: Unlimited “Spotify
builds channels to deliver its service
Players in this industry, e.g. Oknyo, Premium” for mobile and PC during the
closer to user.
Sonos, Logitech, Western Digital, Boxee, contract period (worth £240), 750
and Phillips. minutes to other mobiles, unlimited
1. Music Industry texts and 3-to-3 calls, unlimited internet
Spotify opens its service channel not just access, and free Skype-to–Skype call.
4. Internet Industry
for Major labels, but also for
Spotify partnership with Internet
independent/Self-published Artist Spotify also launched another
industry range with other proprietary
(individual or unsigned), and small labels partnership in that region, with Virgin
service providers. This offer is inline
that do not have delivery partner or Media in 2011, for broadband, mobile
with vision to be the “OS of the music”,
platform. They can make deliveries and set-top box IP TV users, where the
by making it available in range of
through several Aggregators or offers are only available for new or re-
devices, as platform of embedded
Collecting societies that already have an contracting customer. Following the
applications. This means it allows third
agreement with Spotify. expiry of the free offer period (6 months
parties to create discovery application
based on collection of music, images and at no data charge for fixed broadband
Thus, it can be conclude that basically customer, and 3 months for mobile),
video, integrated with its platform.
Spotify mainly deals with Record label, Virgin Media’s customers can continue
However, there is currently no way for
Music publisher, Collecting society, subscription to several Spotify’s services
these third parties to monetize this
and/or Aggregator, not with the Artist. through Virgin Media’s network.
channel.
There is no clear statement on how the
financial arrangements work, as it is set During the same period at that year,
Spotify also built social feature in
up with the Non Disclosure Agreement Spotify sign agreement with KPN, the
cooperation with Facebook, using the
(NDA). But the payment is basically Dutch’s incumbent. The agreement
“Open Graph”, that bridges between
calculated based on function of total allows KPN to offer Spotify Premium
Facebook’s platform with other third-
number of streams and revenue of that bundled to its top-tier triple play
party services. This is actually significant
particular month, result the payout per broadband customer that connected
moving point where the music industry
stream. When the total stream grows with Extra or Premium (copper DSL)
becomes closer to the social network,
more than the total revenue, the and Silver or Gold (FTTH) package,
after MySpace made music as social
payment per stream might be less. Thus, €55/month.
entertainment. Using this, Spotify user
there is no fix price in Spotify system,
can automatically share and discover
difference with “iTunes” model, and
some of the deals might have discount
music each other in the Facebook page,
event if they use different Service
Spotify-TeliaSonera
arrangements.
providers that interact with Facebook Partnership
different way. This partnership boosts TeliaSonera is a merger company
2. Retail and Online Payment Spotify user, as it was reported, Spotify between Swedish incumbent, Telia and
Industry generates ~ 83 thousands new Finish incumbent, Sonera at 2002.
In order to leverage its availability, users/day since Facebook f8 TeliaSonera telecom services operation
Spotify launched partnership with Paypal conference. While in Facebook point of are splinted into 3 business areas
for user in UK, broad its online payment view, this partnership would potentially (Mobility Services, Broadband Services,
channels. It then set partnership with make their user increase amount of time and Eurasia), and operates in range of
other players in the retail business, they spend in its environment, countries in Nordic, Baltic, and Eurasia
makes its payment models expanded not supporting its ads-core business. region (Azerbaijan, Denmark, Estonia,
just using online payments, but also cash Finland, Georgia, Kazakhstan, Latvia,
payment. Since September 2009, Spotify
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6. “Spotify subscriptions increased by ~ 300 %, acquired ~ 25 % Premium subscription,
and TeliaSonera also cited this as one of 3 reasons of its strong performance.“
Lithuania, Moldova, Nepal, Norway, Second, the data connection used competition both in Sweden in Finland
Russia, Spain, Sweden, Tajikistan, during the streaming is counted toward pushes the price and ARPU down. In
Turkey and Uzbekistan.). It is now the the bucket consumption billing. the Nordic market itself, TeliaSonera
5th largest telecom company in Europe However, once the customer reached main competitor also has launched the
by revenue and customer based. over the limit, it still can get access to similar service, which is Telenor and
TeliaSonera Net sales amounted to SEK Spotify streaming service and other WiMP partnership, started in Norway
~ 105 million, where the market share of OTT services (Speed Throttling). and went toward Sweden. Using this
its business areas are 49%, 35%, 16% TeliaSonera implements the “Volume- agreement, TeliaSonera has built at least
respectively, with 170 million total based” data plans (caped based on 3 Strategic objectives: opportunity to
subscribers by Q4 2011. bandwidth volume) and does not do reduce the churn rate, up-selling
packet inspection to differentiate subscription to higher value packages,
In Sweden, TeliaSonera operates under Spotify’s traffic with other OTT’s. and increasing ARPU. In Spotify side,
Telia, Halebop, Skanova Access and this partnership significantly increases its
Cygate brand. In the country with 9.4 Values Exchange customer base, and more importantly
million populations, the mobile There is no exact addressable market drives these customers directly to
penetration has reached 139%, followed mentioned in the campaign marketing of higher-value based subscription
by fixed telephony 54%, and Broadband the alliance. However, it is clear that this (“Spotify premium”), which is still the
32%. TeliaSonera serves mobile partnership strengthen both TeliaSonera core business among Spotify Revenue
communications, broadband, fixed voice and Spotify brand by associating each streams.
(incl. VoIP) and data communication other, as the offer opens possibility to
services and claims to occupy as the first both parties to expand their market and Moreover, at the time when the
in the market position except for data tight the bond with their customer. agreement was launched, Spotify was
communication, 4th position. Moreover, Spotify type of service mostly suit the still young brand and small market
TeliaSonera operates under Sonera, Tele young customer, means this offers will segment. Partnering with incumbent
Finland, Data Info and Cygate brand in have strong attraction to the first-time would definitely leverage its position,
Finland. This country has 5.4 million broadband and TV subscribers. And as helping toward bargaining with the
populations, with mobile penetration has same as several other Network Music industry players, who are taking
reached 142%, followed by fixed operators, TeliaSonera previously has its control over the business ecosystem.
telephony 48%, Broadband 39%. own music service, “Telia During the first term of agreement,
TeliaSonera claims to occupy as the Musikbutiken”, but failed to unlock the Spotify subscriptions through
second in this market, except for data Music business through its telecom TeliaSonera has increased by ~ 300 %,
communication, 3rd position. ecosystem business. Even tough the acquired up to ~ 25 % of “Spotify
Revenue sharing model is not officially Premium” in Sweden, and TeliaSonera
Strategic Alliance Model announced to the public, it is confirmed also cited this partnership as one of 3
Spotify started its 2-years exclusive TeliaSonera takes some part of the slice key reasons of its strong performance at
agreement with TeliaSonera in 2009, and leaves there rest to Spotify to be that year. It is reported, TeliaSonera at
which makes TeliaSonera as sole splinted with the Music industry. So least got direct revenue benefit ~ €77
exclusive operator in Sweden to use basically, there is no direct arrangement billion during its first year partnership
Spotify within its products branding and between TeliaSonera and the Music with Spotify (signing up new users; up
marketing. They boarded it to Finnish industry (as how the “Bridge model” selling data plans in smart phone
market in 2010, and then renewed it in works). Although it is confirmed that bundling, and revenue saved from
2011 for the next 2-years forward. The TeliaSonera also involve in bargaining decreased churn).
partnership enables “Spotify Premium” discussions to help on releasing the
plan to be bundled with TeliaSonera’s product to the market under the Author
mobile, broadband, and IP TV service. agreement model. TeliaSonera able to LAILI AIDI is master
The access to IPTV Set-Top-Box’s was offer the free “Spotify premium” access student at KTH,
activated in June 2010. during early months promotion with no currently doing final
“Hard cap” policy, as there is also thesis research at
Spotify bundling in TeliaSonera specific discount arrangement exist. Ericsson, title
products has more attractiveness for the This is the offer that other Access ”Business Models for Mobile-
user rather than if they access it trough providers could not afford and they are broadband Media Services-Case Study
other Access provider due to several not allowed to use any Spotify brand Indonesia Telecom Market”. The
reasons. First, TeliaSonera offers free included in their own packages. research is under supervision of Jan
access for “Spotify premium” plan up to TeliaSonera has to made step toward Markendahl at Wireless@KTH and
6 months in several packages of mobile differentiation among prominent Greger Blennerud at Ericsson
phone contract. Customer under that competitors in broadband and especially Business Unit Networks. This
contract also gets access to “Spotify in the IP TV product, as its position in manuscript is shortening version from
premium” using the same account in these markets is not as strong as in some of the preliminary findings and
broadband connection and IP TV. Mobile product and the significant analisys. (aidi@kth.se /
laili.aidi@ericsson.com)
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