Spotify Business Analysis

Decent Essays
Spotify is an on-demand streaming music service where the music is instant, simple, and free. Spotify follows a Freemium Business Model; it makes money from advertising as well as paid subscriptions to hear streams of endless music. The music is free to stream from any device but comes with ads being displayed, you can subscribe to the app for a per month, per device basis and enjoy uninterrupted ad-free music. Spotify uses advertisements to make money while playing them in between music sessions. Spotify has three pricing tiers which are: Spotify for free where you can download and listen to Spotify for free but there are ads and limitations while listening to music; Spotify student which is $4.99 and doesn’t have any ads; Family premium …show more content…
The playlist must have at least 20 songs and there can only be one track per artist within the playlist. The advertiser can include links to any webpage of their choosing and can include Spotify content.
Display ads are clickable images displayed for 30 seconds that are displayed independently meaning no other ads are shown at the same time as yours. Display ads are also known as leaderboard ads, which are only displayed on desktops and web Spotify platforms. Leaderboard ads are shown when the consumer is using Spotify.
An Advertiser page is a microsite incorporated into the Spotify player. The Advertiser Page can contain any content you 'd find on a webpage, including videos, clickable images, blogs, news, links, and comments. In order for a user to access the advertiser page, the user must click on the ad and the advertiser page will pop up. This type of advertisement blocks all other ads except audio ads and are hosted by an external URL not
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Using the snapshot of the email below we can analyze Spotify’s email marketing concept. Starting with the title, Spotify tries to use a catchy phrase to grasp the attention of the recipient. In this example, Spotify uses, “Let us introduce premium- you’ll love it!” Just by reading the subject of the email, the user is wondering what premium is and if they will in fact like it. The sender address is, Spotify, the company itself so the user knows exactly who is emailing him/her. The content in the email includes a picture, a couple of words, the company logo, and a link. The content is short and sweet. It briefly explains what Spotify Premium is, “You can listen to any song on demand and skip as many times as you like. Download music and listen offline in extreme quality audio. No ads and no commitment.” In this short email, Spotify was able to explain what Spotify premium is and what it has to offer. They use keywords like “extreme” to show how good the audio quality is. They also get straight to the point and simply just say no commitment and advertisements. The email mentions, “Listen to any song on demand and skip as many times as you like” to show that users are in total control of how they listen to music on Spotify. The email also includes a huge green link that says, “Try premium for free”. People are immediately attracted to the word free, which would compel them to click the link and try premium for free.

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