Spotify
Spotify is a subscription based streaming service, however in December 2013, subscriptions for use on mobile phones was made available to non subscribers. This was both a smart move but costly in my opinion as it has allowed other, more advertising based, companies such as Pandora to make more of an impact on the music industry.
The founders of Spotify are Daniel Ek & also Martin Lorenzton, and was launched back in 2008.
Here is an interesting Interview regarding the future of Spotify with Daniel Ek.
Here's a breakdown of the two leading streaming players of the industry. Source: qz.com
Spotify is already exploring ways to bundle its service with other subscription products to expand its reach. It recently struck a deal with News Corp to grant subscribers to the Times of London newspaper 12 months access to its premium service for free. Remember when Twitter started cleaning up its house a few months before it filed IPO documents last year?
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The Twitter analogy could prove instructive here. Spotify’s financial losses mounted last year, despite surging revenue growth. But as Twitter’s IPO last year shows, US investors have a ravenous appetite for growth, and are prepared to pay top dollar for businesses with promising value propositions that are nonetheless losing money. With 6 million paying subscribers and 23 million active users, Spotify falls into this camp.
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