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Spotify provides a lot of benefits to the artists and music industry: reduce illegal download, expend the life span of music, and provide the listeners the opportunities to consume music in the legal ways. Nevertheless, there are huge disputes between Spotify and top artists over royalty issues. Some of top artists like Taylor Swift and Adele against Spotify: Adele acknowledges that streaming is the future of music industry but she wants to show that “it’s not the only way to consume music” (Adele). Swift against Spotify another reason, during an interview with Time Subscribe, Swift states, “Music is art, and art is important and rare. Important, rare things are valuable. Valuable things should be paid for...music should not be free.” She argues that the valuable things like the music should be paid.

Spotify is one of the most popular music streaming services, offering more songs than any other service, including Pandora and Apple Music. After noticing many people using Spotify, both in and out of school, I decided to join and quickly realized why it is so popular. You can access every song in just a few seconds, making it extremely convenient for its users. I no longer have to endure the hassle of searching through iTunes to pay $1.29 for each song that I want to listen to. Spotify also offers a lot more features than other services do. You are able to create your own playlists as well as listen to the many Spotify playlists, which are constantly

This service it’s surly the most Music streaming Service used in the World with over 75 Million active user every month tea qui 15 million user pay the subscription every month. (Adam Shepherd, 2015) http://www.cloudpro.co.uk/leadership/5577/what-is-spotify ) Spotify was funded in April 2006 by Daniel Ek and Martin Lorentzon and it was Lunched in in September 2008 in Sweden. With over 30 million song available to play Spotify has an huge success thanks to the capability of create playlist , Over 20.000 songs are added on Spotify every day, The playlist made on Spotify are 2 billion and 5 million are the playlist that get edited or created every single day. This is surly a stream service that people like to use infact The number average of hours that listen to Spotify is 20 billion

The purpose of this memo is to better understand how the cloud has changed the music industry for both artists and users. This is an evaluation of 5 of the most popular cloud-based music streaming applications. These applications allow people to have access to more music than ever before, wherever they are. Each app has different features that may make them appealing to different people, so it is important to evaluate them to see strengths and weaknesses.

With the advances in technology and increase in internet broadband availability (The Broadband Commision, 2014), record labels are being forces to innovate and update their business models (M.Coz & Torres, 2013) to keep up with the latest technology (Solis, 2015). Of these technologies, the move away from physical sales (of music) to Digital sales is the most significant. Digital sales have increased over the last 6 years (as shown in Table 1) in terms of revenues, and this is set to carry on this way in the future (Solis, 2015).

This case study about the Spotify business model allows a broader vision of what the digital music industry is. In a short time, many companies have developed and managed marked their territory in a highly competitive industry. The start-up Spotify has undergone a remarkable evolution in a financial point of view but also in terms of its popularity. Its various competitive benefits regarding the market leader and its respect for music labels have enabled the company to be renowned and to have a reputation in the real business. Today, five years after its creation, Spotify is certainly criticized in some aspects of

After a rapid development over the past 10 years, the music market is currently undergoing significant changes. These changes are caused not only by marketing competition but also by the challenges from external marketing environment.

Since April 2003, iTunes Music Store has permitted the consumer to purchase music and digital books over the Internet with success. By 2005 their shares increase significantly as a result of their tremendous success. Their product became a platform for the digital music business to explode into the industry it is today. This also made digital music affordable to the consumer who may have gone to illegal downloads in the past which in turn ensured that the music industry was getting paid for their product as well. The $0.99 cents per song download provided $0.70 cents to be paid to the record companies and the remainder ($0.29 cents) was Apple profit. By August 2005, some of the larger record companies felt that their product was

In 1999, three young men who were passionate about computer programming created a website that would bring an entire industry to its knees. As the three boys, Shawn Fanning, John Fanning, and Sean Fanning, worked hard on their project, they could’ve never imagined that their invention, a peer to peer music file sharing service called, Napster, would effectively revolutionize the way an entire generation created, delivered, and received its entertainment. Since then, the internet, file sharing, and the music industry has changed drastically. Since Napster’s invention in 1999 we’ve had millions of different similar services come about such as iTunes, Rhapsody. Roxio, YouTube, Spotify and NoiseTrade. Napster’s creation and then subsequent demise in 2002, sparked a controversy that still exists today, the effects of music downloading on music industry revenue.

The "business side of music is struggling to generate enough revenue because of the new technology" ("How the Internet Changed Music."). "Most of the people who are part of making a record are paid in royalties, and anytime music changes hands without money being involved, those royalties can’t be paid—which is why so much has been done in recent years to try and reduce music piracy"("How The Internet Changed Music."). iTunes and Amazon has helped by offering cheap downloads for single songs, which allows the customer to only purchase songs they like rather than the entire album ("How the Internet Changed Music."). Spotify and Pandora, who offer either ad-based or paid subscription streaming of their music libraries, are Internet radio stations which have also helped with the piracy problem ("How The Internet Changed

The music industry is an oligopoly. Since the late 1800’s people like Thomas Edison have been buying up patents in communication technology, forming monopolies, leading to a non-competitive entertainment industry. With only a handful of corporations controlling all aspects of acquisition, distribution and marketing of music, harsh business principles create an exploitative industry that takes the best of what artists have to offer and leaves many of them unable to support themselves. Beginning in the 1950’s with payola and white cover music and ultimately evolving into iTunes and Spotify, the music industry has grown into a billion dollar industry with far-reaching influence and control. Contracts rarely serve the artists’ best interest and many are left out to dry when their usefulness has expired.

Over the past decade, the use of CDs has been replaced with online streaming and retailing. This has eliminated much of the record companies revenues as they were used to making most of their profit off of distribution and promotion of physical copies of artists albums (Niemen). This has caused for a major shift and remodeling of major players in the music industries business models. Companies such Sony, Warner Music Group and Universal Music Group have started to completely rethink the way they conduct business (Forbes). In the past record labels were not only responsible for production, distribution and promotion of an artist and his/her music, but they also acted as a bank (Forbes), funding the artists tours and recording sessions. Recently, these music giants have been moving towards becoming more of a modular network organization. What this means is that they are less occupied with the nitty gritty, and more focused on what they do best which is distribution and promotion. This also allows for more freedom of creativity for the artist as well as fairer split of profits (Forbes). This adaption of new business models clearly shows the versatility of the music industry in adapting to new times and technologies.

This paper aims to improve Spotify’s strategies in order to make its business more profitable.

In the midst of the United States’ “dot com bubble” (years 1997-2000), there was a surge in technology that brought about file sharing and digital downloads. Threatening the survival of the music industry and introducing a unique set of challenges for the industry to overcome. To remain relevant in the new global market of digital music online, the music industry would have to evolve and change with the introduction of each new facet technology had to offer. The introduction of digitally compressed music files, so easily attainable for a small fee or downloaded legally (pirated) for free, made the music industry reevaluate how to make a profit and protect copyrights. Social media created a visible opportunity for both consumers and artists to maintain digital relationships while providing a platform for consumers to follow and discover new musicians and bands, naturally, making the internet a promotional medium for artists. As the corner record shops closed to make way for virtual storefronts and instant downloads; the internet, digital downloading, and social media made an enormous impact on the music industry that has changed the way consumers purchase, source, listen to, and produce music today.

Spotify is a product of change. Consumers today are not the same as they were fifty years ago. Businesses like Spotify know this and use it to their advantage. According to industry expert Dave Touve, “people pay more, on average, for