The Rise Of Spotify | Facts about Spotify Domination in Music Industry
Whenever we are listing some romantic songs then in between two songs we gets ads! How boring … There are lots of Indian Music Industry Platform who serve music but with ads and the real superhero comes, Spotify Entered India in 2019. After the entry of Spotify the value of many other apps becomes less.
How the Streaming Giant Has Changed Music
Spotify is a Swedish company that managed to make one of the best streaming platforms ever. How? Why is Spotify so successful? Which marketing strategy did they use through which they earned a revenue of more than 694 Billion Indian Rupees in 2020. This whole amount is earned only from India.
1 Spotify's Launch On Spotify
2008 is the year when Spotify was launched. Before that people didn't have any music streaming platform to hear songs. People used to download songs from pirated websites. That means most of the music was shared through piracy. After doing lots of efforts, artists, singers and songwriters didn't get the money for their hard work.
In consideration of piracy there were lots of laws that came into picture but still piracy is going on even today also. Daniel Yeik noticed all these things. In 2002, they thought about why they should not make such a medium where people can listen to music for free. On the same platform music labels can promote their artists' music. In 2008, he co founded Spotify!
If we talk about Daniel then he is a genius AI developer. He worked in lots of tech companies before co-founding Spotify. Listen to this fact- He was also a College Dropout!
In 2006 he sold an online marketing company and earned millions of dollars. He also took an early retirement at the age of 23. After that he thought that maybe he is too young to retire, which is when he came up with the idea of Spotify. Now Spotify is available in more than 170 plus countries in the world.
2 Profits and Losses On Spotify
Despite being so popular, people chiang Spotify over other streaming platforms, making deals with music labels. Spotify was still working in losses. If we see their cost sheet for 2018 then their revenue was moderate. But the money they earned from ads, premium and ads of other companies out of that more than 75% was spent to buy the rights of songs so that they can stream them on the app Spotify.
If we see the cost of tax reduction, marketing and research then their total earnings almost reach a negative number. That means loss!
The alternative solution to get profit is to increase the cost of premium subscription. But Spotify would have to compete with Apple music and that's why if they increased premium cost then their premium users may be decreased.
Spotify started earning profits recently in the first quarter of 2021. This all is due to the pandemic because people were streaming more podcasts and streaming music while sitting at home.
3 R&D On Spotify
Now let's know the season behind the success story of spotify! One of the main reasons is the Spotify algorithm and playlists. Has it ever happened to you that you're listening to a song on Spotify and it suddenly recommends you a similar fantastic song and then you go on to that playlist and listen to all the songs recommended by them. This is all due to data collection and research and development. Daily Mix Playlist, Discover Weekly, Release Radar are very popular in India. Spotify had another advantage of data from 2008 to 2018. That means they had almost 10 years of data collection which they could mold and utilize to recommend songs to you.
4 Spotify Premium On Spotify
Another one of the major reasons why Spotify is so successful, is their Ad Free Premium upgrade service. This is the major reason for their revenue generation. If you have noticed, there are many features for the Indian audience on Spotify which are different from other countries' features.
For example Spotify mini, Premium Duo, Premium Family, Premium Student also with subscription plan from 1 day to 1 year also! According to psychological perspective, once we start premium services for 1 day or even a month if we listen to songs without ads, then our brain will get used to it. Spotify ads are also annoying for the same reason so that you get irritated and are compelled to buy Premium.
If you listen to these Spotify advertisements then they are very creative. They also have started to make spoofs of their own advertisements.
5 Spotify For Artists On Spotify
Along with their listeners, Spotify gives many features to their artists too. If you are an artist whose song us upon a Spotify you can download there sister app Spotify for the artist and track the performance of your songs and analyse them. This will give you information like what is the age group of your audience? Which city do they belong from?At any point of time how many people are listening to you on Spotify?. In fact you can also get information about which other artists are your followers listening to too?
Artists can also give updates about their upcoming concerts on their Spotify page. They can change their bio's and pictures by themselves. It's all like instagram or facebook. Along with this if they want to promote their music then they can do it with ads.
On the other hand, no other app gives their artists so many features. Main point is that the app Spotify For Artists is absolutely free to use.
6 Reward System On Spotify
When there is time to make customers and premium users happy, Spotify does not hesitate any more. Spotify occasionally sends gifts to their customers. For example, Spotify gifted free google home service to an American for a loyal premium user. Spotify has sent gifts to many such people. Similarly on Spotify you can gift your friends Premium or even send an electronic greeting card with a personalized message. Everyone should learn how to maintain customer relations from Spotify.
So what can we learn From Spotify?
Solve A Problem
You'll have to create something that will solve people's problems. That doesn't mean that you will have to discover something extraordinary. You just have to find the gap and create something that closes the gap.
Customer Focus Orientation
If you can figure out what your customers want and if you can provide them with that and satisfy them then you will be successful. During this no matter how long it takes.
Be Global but Act Local
Spotify is a global brand but has plans according to its local customers. They know the music and listening preferences of their local customers. They created plans and dashboard according to local clients usage.
People also ask
How did Spotify become popular?
The real key behind Spotify's success is the company's original strategy: to create a free version of its mobile app, with similar features and functionality. It was simply hoping to tap into the massive potential of the spotify application.
When did Spotify become popular?
User growth. In March 2011, Spotify announced a customer base of 1 million paying subscribers across Europe, and by September 2011, the number of paying subscribers had doubled to two million. In August 2012, Time reported 15 million active users, four million being paying Spotify subscribers.
How has Spotify impacted society?
Spotify has revolutionised how we consume music. From mood playlists to machine learning algorithms, the streaming service has become the definitive tastemaker. From vinyls to cassettes to mp3 players, the way we access music is constantly changing.
How does Spotify evolve?
It has evolved from being just a streaming service, to offering downloaded content, radio capabilities, and playlist curation. In its current form, Spotify has two paths of customers: freemium with ads, and $10 a month for premium.
Why is Spotify so great?
Other than having a unified app experience, Spotify has a large catalog of music (35+ million songs), the best playlist recommendations, useful, yet non-intrusive social features, and a variety of plans (including student discounts) that make it great for most music listeners with a smartphone and some headphones.
What makes Spotify unique?
Its catalogue of music is among the largest, with 15 million songs. Essentially, Spotify wants you to rent songs rather than own them. And, unlike on some other sites, you can choose exactly which tracks you want to listen to on this service -- instead of picking a genre.
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