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.
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
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