Youtube Video

Transcript

Note: Transcripts are generated using speech recognition software and may contain errors.
Hi there you are watching Rand's media and today we'll be discussing the incredible story of how Spotify was created and how a small Swedish music service launched in 2008, got so big that it became popular across the globe. Watch this entire video to find out how Spotify outplayed apple at its own game. If you would like to watch more content like this, subscribe to rand's Media also don't forget to hit the bell icon. So you never miss any videos from us Since more and more people from all over the world are using music streaming services. We decided to uncover the incredible story of one of the most popular music streaming services. Spotify here, it is worth mentioning that statistical reports indicate that Spotify has reached more than 124 million premium subscribers globally. So how did this music service become one of the most popular ones? Let's take a closer look at the story behind Spotify. Go back to the year 2006 when the landscape of the music industry was very different from what we see today. Services such as Napster were long dead and Internet radio was still in its infancy. Let me tell you that Pandora and I heart radio launched their online radio stations in 2008. The music industry was also struggling since the sales of physical media like CDS had been reduced significantly and even the record labels seem to have few ideas at that time to Swedish serial entrepreneurs found an opportunity, Martin. Lawrenson and Daniel Ek thought that there must be a better way for consumers to find and listen to new music. So they started brainstorming ideas for their next business, which was Spotify As Daniel has described, he said that he met Martin in 2005 and they discussed several ideas back and forth. The two good friends used to spend a lot of time in Daniel's apartment and eventually decided to launch a music streaming service. Daniel says that the title of the company was initially misheard from a name shouted by martin. However, they eventually thought out an Entomology of a combination of identity and Spot. On October seven, they launched Spotify with a free music service for subscribers, but with ads However, users could upgrade to a 999 monthly subscription for an ad, free premium account for making Spotify successful, the two partners had to have the record labels on their side. Daniel asked record labels to open and they did. The company contacted influential music bloggers in Sweden and invited them to try this product. This strategy proved to be effective and Spotify was becoming more and more popular By the year 2009 different record labels owned 20% of Spotify. In the same year, the service got its big boost when Facebook Ceo Mark Zuckerberg posted on Facebook. Spotify is so good and the interesting part is that Spotify was not even available in the U. S. At the time. Initially the company was focused on hiring top engineering talent so Spotify can offer a frictionless experience to its users. In 2011, it launched in the US. and at that time it had one million paying subscribers by September of 2011. Spotify went from one million subscribers to two million. While the company faced several challenges during its successful journey, the launch of Apple music in 2015 was indeed one of the most significant ones. You already know that Apple is a big player, right? However, it did not have all the tricks up its sleeve, and Spotify understood that people want to feel unique. So Spotify created the wrapped year in review. Each year the service reminds users about their musical genetics, favorite songs, podcasts and artists and allows them to share results on social platforms like twitter, facebook and instagram. On the other hand, apple music users cannot do the same since the year and summary is not shareable. Spotify has drastically changed the way we consume music through a number of vital elements. It's no longer about those long awaited albums. Instead, it is about a steady flow of unlimited music that appeals explicitly to each user. Yes, Spotify has dominated music. This service operates under a freemium business model, which means that basic services are free for all users. However, paid subscriptions offer additional features to users Through these premium subscriptions. Spotify makes money another way through which Spotify generates revenue is by selling ad placements to third parties. Back in the year 2013, Spotify launched a new site called Spotify for artists, which explained the business model as well as revenue data of the company. In simple words, the business model is based on Spotify is digital platform that connects fans and artists. The goal of this company is to enable one million artists to live off their work through the platform. Major record labels and independent artists provide their content to the company and in return, Spotify pays them royalties for streaming music, 70% of the total revenue goes to copyright holders and they receive an average per play payout from .006 $2.0084 here. You need to understand that the company first identified a problem. It was becoming challenging for artists to sell their music through C. D. S. And it offered a solution by providing artists with a better platform where they can sell their music while also offering fans an easy way to listen to their favorite music. Currently, it offers you two subscription types, including Spotify free and Spotify premium. The premium account provides several benefits, including removed, adds enhanced mobile listening, better sound quality and users can also listen offline Moreover, it also offers a discounted premium subscription tier for students in more than 30 countries. And in 2014, Spotify introduced the family subscription, which connects up to five different family members for a shared Spotify premium account. And while the platform offers 10 different types of advertising formats to marketers, it also introduced Spotify eyes own streaming ad insertion technology at the beginning of this year. The ads vary depending on size, user engagement and type. Over the years, this music streaming service has built trust with artists as well as subscribers, and Spotify has always been trying new strategies to improve its services, which is essential to say one of the top music streaming services in the world. If you also want to start your own business venture, I would say that you should learn from Spotify strategies and adopt them in your own business. Undoubtedly the story behind the success of Spotify is really amazing and we can learn a lot from it. The invention of Spotify is a great success in the music industry and after two decades of disruption, this music streaming service is enjoying enormous success. I hope you enjoyed this video about how Spotify became successful if you like this video, don't forget to give it a thumbs up and share it with your friends who you think have an idea to change the music or entertainment industry. Learning from the success of such businesses and implementing strategies in your own business can help you build the next Spotify, netflix, instagram and more. Also tell me in the comments below, what you learn from Spotify Story. We'll see you in the next video. Bye.