Ch. 6 - Consumer Decision Making

The way music is consumed has changed drastically over the last 120 years, from live shows, to sheet music and piano rolls, to vinyls, to reel-to-reel and cassette tapes, CD, DVD and finally all digital audio file formats available(wav, flac, mp3, etc) but, over the last 25 years digital formats(downloads, streaming dominate the way mainstream music is accessed making up most of the revenue. In the music streaming market, consumers have many to choose from, Apple music, Amazon music, Deezer, Pandora(only in the U.S.), Napster, YouTube music and of course Spotify. One thing these service providers share in common is that all offer a convenient access to a vast library of music, what has made Spotify stand out from the competition has been a strong social media presence since their release in the U.S. in 2011 by partnering with Facebook to acquire enough exposure and users, also Spotify was amongst the first legal streaming service available to challenge the illegal file share services like pirate bay, Napster. But because of it being just the place where the music is stored and accessed, Artists individually have the responsibility of generating an emotional connection with their fans. social sharing features

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Ch. 2 - Strategic Planning for Competitive Advantage

Spotify SWOT Analysis: Strengths: - Easily Accessible, and compatibility with almost every modern technological device. -Intuitive easy to use user interface -Large and varied collection of music -Incentivizes listening to new music -It can be used for free -International availability Weaknesses: -Difficult for independent artists to profit -Dependence on other technology companies -Dependence on internet connection -The company runs on zero profits Opportunities: -Potential strategic alliances with mobile carriers, manufacturers or tech companies. -Higher demand for worldwide music accessibility -Better use of A.I. to offer a more interesting music recommendations Threats: -Negative artist opinions -Better deals offered by a competitor both for the artist and the listener

Ch. 1: Overview of Marketing (Brief History and Mission Statement)

Spotify was founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon and although the company's head office is now in London, much of its research and development remains in Stockholm. The streaming service launched on October 7, 2008 and the company initially limited the sign-up for free services by making it invite-only. Paid-for subscriptions were made available immediately but despite this, Spotify reported a $4.4 million loss in 2008. By 2012, the company had launched its service on Android smartphones. In 2015, the company updated and rebranded itself, adding music videos and clips to the service. By that point, the service had over 25 billion hours of songs available. Spotify’s mission statement 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 these creators .” The mission statement sheds more light on the goals ...

Ch. 14 - Retailing

The distribution of music has drastically changed since 1995 when the use of mp3 files became more frequent allowing users to share music through the internet and forcing record labels to adapt to consumer demands. Spotify instead of selling individual albums or tracks, they sell memberships that grants access to more than 50 millions tracks, great deal for fans. Spotify is a very simple example of online retailing that has proved great success, but this has not stopped other forms of music distribution, because physical goods like CDs, cassettes, vinyls, and merchandising are still profitable, Spotify acknowledges this shortcoming by allowing artists promote their merchandise and physical copies of their music on their page.

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