SpotifyBrand Analysis

Company Overview

2

3

4

5

Launched in 2008 in Stockholm, Sweden 1

Service Models: Freemium & Premium

Social & Interactive Features

Partnerships & Competition

Available in 58 markets

SWOT ANALYSIS

SWOT

Quality Partnerships Variety R&D

Strengths Weaknesses Excessive cost for freemium

model Challenges to move customers

to paid subscription Challenges to attract artists

Opportunities Streaming Market forecast to

become mainstream Partnerships Increasing Consumer Engagement Growth Potential

Threats Aggressive Competitors Varying price structures Artists’ backlash Cannibalization Piracy Digital Stream Capture Technology

Experience Adaptation Ease of Use Accessibility

Social & Interactive Features Peer-to-Peer Technology

Qualitative Analysis: Social Media Monitoring

Our Social Media Monitoring Tool of choice was Topsy and our Social Media Platform of choice was Twitter. A total

of 1816 tweets were analyzed

Coding Guidelines

Satisfaction 1=mentioned 0=not mentioned

Artists 1=mentioned 0=not mentioned

Songs and Playlists 1=mentioned 0=not mentioned

Competitors 1=mentioned 0=not mentioned

Collaborators 1=mentioned 0=not mentioned

Positive/Negative 1=Positive 0=Negative

Qualitative Analysis: Social Media Monitoring

Interactive Platforms

Freemium vs.

Premium

Social Media

Variety of Music

Qualitative Analysis: Social Media Monitoring

•"My spotify discover weekly playlist is so on point this week. It's like they read my mood and sent song that applied to what I feel."

Fans praising their favorite songs, albums and playlists

•#NewMusic @DaReal_BoogiieB "Doing Something Right" on #Spotify http://spoti.fi/1iXXHM2

Spotify Users/Artist promoting their new singles, albums and playlists

• "Mad that Taylor swift isn't on spotify"

• "ISIS exists because Taylor Swift is not on Spotify"

Unavailability of certain artist on Spotify

•who else is extremely irritated with the savers commercial on Spotify? 🙋🏼

• I'm salty at the fact the Democratic Debate can go 40 minutes with no commercial yet Spotify can't even go 20

Spotify users complaining about ads.

Quantitative Analysis: Online Survey

72 Respondents

Service Quality

User Experience

Overall Satisfaction

Who where our participants?

18-2526-35

0102030405060 70.8%

29.2%

Age Group

# of

Par

ticip

ants

45.80%54.20%MaleFemale

Yes, Freemium user Yes, Premium

user No, use other type No, don't use any

type

0

5

10

15

20

25

30

35

31.9%

45.8%

13.9%

8.3%

# of

Par

ticip

ants

Findings

Spotify

Users

• Overall participants consider Spotify to have an easily accessible platform.

• The leading factors driving users’ satisfaction are the ability to create playlists and the ability to listen to music with no interruptions (Premium Users Only).

• In addition, our analysis reveals that users are likely to recommend Spotify to a friend/family member.

Freemium & Premium Users

Likely to be Female

Use it less frequently

Create Playlists add more value

Don’t prefer it over others

services

Do Not Consider

Loyal

Would recommend it to family & friends

Are highly

satisfied

Likely to be Male

Use it more frequently No Ads

add more value Prefer it over

others services

Freemium Premium

Upgrade to a Premium Account

Listen to music offline

Lower Price

No Interruptions (Ads)

Everyday Users vs. Not Everyday Users

Spotify's additional features adds more value to their experience.

Are more satisfied with the service.

Would recommend Spotify to a friend/family member.

Consider Spotify to be a user-friendly platform.

High Income vs. Low Income

• High income users (> $100,000) consider the ability to create playlists adds more value to their experience than low income users (<$50,000).

High Income

• Low income users (<$50,000) consider the additional features adds more value to their experience thanHigh income users (> $100,000).

Low Income

Can we explain/predict Overall Satisfaction?

Dependent Variables % Explained Significant PredictorsLoyalty 27.9% = .951 + .713 (Create Playlist)

Prefer Spotify 20.2% =1.500 + .648 (Quality Audio)

Recommend Spotify 23.5% = 1.543 + .674 (Quality Audio)

Freemium Users

Premium UsersDependent Variables % Explained Significant Predictors

Overall Satisfaction 55.7% -.280 + .552 (Create Playlist) + .512 (Speed of Stream)

Loyalty 42.9% = 2.234 + .567 (Additional Features)

Prefer Spotify 63.1% -.358 + .768 (Play Any Song) + .197 (Ability to Interact)

Recommendations

What now?

Spotify users are likely to recommend the service to friends and family members. An opportunity for Spotify to create awareness is by using word of mouth.

Spotify should aim to enhance the variables that are likely to increase the value added of its premium service. Features, such as, the speed of stream and ability to create playlists, can be further enhanced for premium users only in order to attract new users.

Spotify should concentrate efforts on enhancing its additional features to increase the loyalty of Premium users, who prefer Spotify over other online music streaming services, but do not necessarily consider themselves loyal to Spotify.

Recommendations

What now?

Spotify should continue offering discounted prices to college students and families.

Spotify should analyze competition to identify the factors that might be encouraging customers to use other online music streaming services. Indirect competitors such as Pandora and SoundCloud should not be underestimated.

By creating even more partnerships and joint ventures with other popular interactive platforms, such as Forever 21 Mobile App, and social media channels such as Periscope, Spotify should be able to increase awareness and expand its network.

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