Im spotify
-
Upload
rei-murakami -
Category
Business
-
view
113 -
download
0
Transcript of Im spotify
SpotifyBusiness Model
Free iTunes Library
Copyright(C) Rei Murakami 2
The Trajectory 15 million songs,*1
including popular ones
10 million users and
2.5 million paying subscribers * 2
Valued at $1.1 billion,
though founded in 2006 *3
Copyright(C) Rei Murakami 3*1 Slate (http://slate.me/njbEnB)*2 BBC (http://bbc.in/hcqcdx) *3 ZDNet (http://zd.net/rjQkQU)
Revenue Sources Free users – Advertising-Based
$9.99 a month subscription – Membership without Ad and limits
Copyright(C) Rei Murakami 4
Cost DriversLicensing fee to Music labels
$45 million dollars per year *1
Copyright(C) Rei Murakami 5*1 ballade.no (http://bit.ly/eBoKZ9)
Other ExampleDropbox
Evernote
Copyright(C) Rei Murakami 6
Freemium“Free ” + “Premium”
A typical business model among “web 2.0” start-ups
Copyright(C) Rei Murakami 7
What’s the Problem?Spotify’s Net Loss in 2010 was $41.5 million
Of $63.2 million total sales,
Advertising accounts for just 29 %
Spotify subscribers -10% of total users -
generate about 71 percent of the company's
revenues.
Copyright(C) Rei Murakami 8*1 Billboard.bizz (http://bit.ly/o30BsR)