How Spotify Turned Free Music Into A $48 Billion Valuation (Spotify Success Story)
How Spotify Turned Free Music Into A $48 Billion Valuation // Spotify is currently the world’s most-used streaming platform. From music to podcasts and audiobooks, the streaming app hosts a variety of content and has over 286 million active users across 92 countries.
It was in 2008 that Spotify first made its way into the market. It was difficult for the newly established streaming platform to convince people to pay for music, when they had become so used to downloading entire albums for free. In the initial phase, Spotify managed the growth of its platform by making its free ad-supported tier available on an invite-only basis. This meant that users who had found their way onto the free tier could invite their friends to join them. This was similar to how Google had rolled out Gmail a few years earlier. Five months later, Spotify had reached its millionth user. By September of the same year, the platform was available on smartphones with its first mobile app for Android and iOS.
As Spotify Tech reaches close to a $50 billion market cap - it’s unclear what the future holds for rival streaming platforms, Apple Music. That said, Spotify currently has a much larger user base, having grabbed 31% of the total revenue and 35% of total paid subscribers, as opposed to Apple Music’s 24% total streaming revenues and 19% share of the total paid subscriptions. This is all in spite of mounting competition from Deezer, Soundcloud, and Jay-Z owned Tidal. Unlike Youtube Music, Amazon Music - Spotify has no other businesses to rely on for revenue, such as cloud computing or e-commerce. More importantly, Spotify doesn't build hardware devices for its app to be preloaded on - such as iPhone. The golden rule behind Spotify’s success is that it doesn't ask for any money upfront. In fact, you can go for years without ever paying a dime.
▶▶ SUBSCRIBE FOR MORE INTERESTING STORIES
-----------------About Company Chronicles------------------
We focus on providing our audience with amazing stories of successful startups, rise and fall of great companies, biographies of successful entrepreneurs and many more to help you understand what you are truly capable of doing and it's really possible to achieve your life goals.
----------------------------------------------------------------------------------------------
▼Music
"Rev" - Eveningland
"Birds" - Corbyn Kides
"One Last Time" -South London HiFi
"Above Planets" - Patrick Patrikios
"Global" - Emmitt Fenn
"Hit The Lights" - Twin Musicom
▼Vector Graphics
Freepik: https://www.freepik.com/
Studiogshock
▼ Sources
https://www.fastcompany.com/company/s...
https://outsideinsight.com/insights/h...
https://www.bbc.com/news/newsbeat-432....
https://producthabits.com/how-spotify...
https://www.theverge.com/this-is-my-n...
https://www.forbes.com/sites/oisinlun...
https://channels.theinnovationenterpr...
https://www.independent.co.uk/arts-en...