spotify preso jwrees_eecs_441
TRANSCRIPT
PRODUCTS
• “Freemium” Service • Curated playlists, music recommendations, and radio • 40 million paid subscribers, 100 million active users
¡ Annual Revenue: $2.18 Billion in 2015
¡ Net Income: loss of $194 million
¡ Valued at: $8 Billion
FINANCIALS
Financials (in Thousands of Euros)
¡ 37% market share for streaming services
¡ Royalties to Major Labels
¡ IPO in 2017???
FINANCIALS
Financials (in Thousands of Euros)
¡ Paid Subscriptions ¡ Third Party Advertisements - $110 million in 2014 to $220
million in 2015
BUSINESS MODEL
¡ Founded in Sweden in 2006
¡ First launched in 2008, available in UK in 2009
¡ Launched in USA in 2011
HISTORY
Martin Lorentzon and Daniel Ek, Founders
¡ Tried several different subscription models
¡ Raised millions of dollars in funding ($500 million in Jan. 2016)
¡ Plans to go public in 2017
HISTORY
Martin Lorentzon and Daniel Ek, Founders
COMPETITION
• 30 million songs • Free and Paid options • Weekly discovery
playlists and curated playlists
• Social Media integration
• Intuitive interface
• 30 million songs • Free trial, but only paid
option • Exclusives- Drake,
Radiohead, Frank Ocean, Taylor Swift
• Suggestions based on user tastes
• “Unintuitive” interface
• 25 million songs • Free trial, but only
paid option • $19.99/month high
quality option • Exclusives – Kanye
West, Beyonce • Higher artist royalites