Name: Cedric Courtois
Student number: s1234567
Tutor: Zoe MacLean
Word count: 1,229
COMU1130 Assessment 2: Spotify
Value propositions
Spotify
... [Show More] enables end-users to search and legally stream or download their favourite music to
any device. The service provides an enormous library of popular and niche music, audiobooks,
and podcasts. Spotify provides tools to organise and share music and to explore and discover
new music through curated playlists and algorithmic recommendations (Carlsson &
Leijonhufvud, 2021). Spotify’s service soundtrackyourbrand.com offers businesses the tools
to schedule and legally play music in their venues (e.g., hospitality and retail; Soundtrack,
2022).
Spotify provides record labels and artists with tools to effortlessly distribute and promote their
music to an audience of over 400 million users (Spotify, 2022a). Unlike prior illegal
predecessors, Spotify compensates rightsholders and provides them with promotional and
analytics tools to develop their portfolios. Streaming volume on Spotify even counts toward
music chart rankings (Knake, 2014).
Finally, Spotify enables advertisers to target the users of the service’s free version with audio,
video, and podcast ads. The service offers tools and support to create ads, target audiences, and
track campaign performance in real-time (Spotify, 2022d).
Customer segments
Spotify targets a mass market of music consumers through its widely appealing catalogue of
popular music. The low overhead costs of online distribution mean the service can cater to
niche audiences. The company segments subscribers and targets them with dedicated payment
plans, e.g., families, students, couples (Spotify, 2022a). Spotify also targets the market of
businesses looking for an integrated solution to play copyrighted music at their venues
(Soundtrack, 2022).
Spotify offers services to music distributors and advertisers, regardless of their size and budget
(Spotify, 2022d). This implies that both major record labels and independents distribute their
music through Spotify (Spotify, 2022f).
Channels
Spotify is available through a browser-based service or its dedicated desktop and mobile apps,
the latter of which are offered through the Apple App Store and Google Play (Spotify, 2022b). [Show Less]