Spotify Music as a Mobile Service Case Study

Spotify Music as a Mobile Service Case Study

Case Study; No more than 2 pages single-spaced.

Spotify Music as a Mobile Service

Daniel Ek spotted a business opportunity in the music industry when he was convinced that if you give away music for free and make it easy and pleasant for people to listen, then they will become regular listeners. Ek wanted to disrupt the digital-download music business by replacing the iPod with on-demand music via mobile phones. As a habit formed, these users would almost magically be willing to pay for what they had been getting for free, Ek’s Spotify start-up operates on this premise: the more you play, the more you’ll pay. This counterintuitive idea continues to form the basis of Spotify’s business model, even as it has confounded music labels and artists.

Since 2008, when Spotify launched, it has remained the global music leader using the cloud to steam music, popularizing the idea of music as a service rather than goods that consumers own. With 100 million paying subscribers, Spotify currently remains the top cloud music provider, although Apple and Google are approaching fast in the rearview mirror.

Apple, which dominated the digital-downloaded music business with iTunes during the 2000s, launched its music subscription service in 2015. Some analysts predict it could pass Spotify in subscribers within a year, thanks to the power of the iPhone user base and Echo smart speakers. Amazon Prime Music Unlimited customers are signing up in droves to Amazon’s cloud music service.

Google already has the globe’s most popular digital music listening device in YouTube, and in an effort to make more money from it, the company recently introduced a Spotify-like Youtube Music subscription.

Questions

1. How is Spotify taking advantage of mobile devices?

2. How is Spotify a Music as a Service business?

3. Why should Spotify care about mobile device management?

4. Why should Spotify care about mobile application management?

5. Without wireless technologies and mobile devices, would Spotify be successful? Why or why not?

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