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.
Ch. 11 - Developing and Managing Products: While the vast majority of music consumption has always been on the go, in the beginning big online libraries of music files (such as Napster) that allowed you to download their content were available to anyone with an internet connection and a desktop computer, but the download speed, risks, industry and artists opposition, laws restricted this methods. Spotify's proposal was to enhance the download speed, eliminate risks, and please labels and artists, beginning with solving the speed problem using peer to peer technology for faster downloads. Released in 2008 Spotify's vision always has been to be the consumer's entire music system, their business relied in ads to make profit(freemium), with the arrival of smartphones, Spotify had to develop an app that could match the functionality of the desktop version, mobile data service wasn't good enough to provide enough speed for streaming so they opted to allow the user to sync u...

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