Spotify's offers free service that runs ads between songs, but we can say the same about Youtube music, pandora, and illegal downloading, Spotify has 3 main competitive advantages the first one being its social networking features that allow listeners to share songs and playlists among friends on Facebook and Twitter. Their second advantage it's their use of listener's data to personalize the experience by using algorithms that can help surface the right content at
the right time based on time of day and user context. Their final advantage that ties the last two, Spotify's user-generated playlists may be
its biggest competitive advantage. Playlists created and shared by users
accounted for 36% of listening hours.
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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