Spotify Strategic Analysis

Practice for the francesco Derchi Course

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Spotify Strategic Analysis 저자: Mind Map: Spotify Strategic Analysis

1. Future

1.1. Continus monitoring of Millenials and Genz Sociological trends

1.2. Blue oceans to explore

1.2.1. Audiobooks

1.2.2. AudioGuide

1.2.3. Blind Interactive audio-games (really exist, i swear)

1.2.4. Generative Music Share

1.2.5. Gen IA Music Creation

1.2.6. Customized Vinile Dropship

1.2.6.1. Send a song or a playlist with fisical vintage support that users prefere

2. Citations:

2.1. https://musically.com/2024/07/10/spotify-adds-comments-for-podcasts-could-music-follow/

2.2. https://www.musicbusinessworldwide.com/spotify-is-embracing-elements-of-universal-music-groups-artist-centric-royalties-model-following-a-new-multi-year-licensing-deal-between-umg-and-daniel-eks-platf/

2.3. https://www.midiaresearch.com/blog/by-backpedalling-its-exclusive-strategy-spotify-puts-its-content-to-the-test

2.4. https://newsroom.spotify.com/2023-03-08/new-home-page-scroll-clips-previews/

2.5. https://www.theverge.com/23768886/spotify-podcast-strategy-mistakes-joe-rogan-exclusives-trevor-noah

2.6. https://www.techtalesandtactics.com/p/spotifys-evolution-unveiling-platform-strategies-future-trends

2.7. https://playlistpush.com/blog/lofi-beats-spotify-promotion/vo Mapa Mental

2.8. https://www.ilpost.it/2022/06/08/rumore-bianco-musica-ambient-lavorare-studiare-rilassarsi/

3. Sensing Capabilities

3.1. **Market Trend Detection**

3.1.1. - Detected user behavior shifts toward short-form vertical video content

3.1.2. - Identified growing demand for podcasts and exclusive content

3.1.3. - Recognized the rise of lo-fi and ambient music with lower royalty costs

3.1.4. - Observed the importance of social and community features for young users

3.2. **User Behavior Analysis**

3.2.1. - Understood that young adults are the key target demographic

3.2.2. - Recognized the value of "pirated" users as potential future paying customers

3.2.3. - Identified the importance of concert discovery and live music integration

4. Seizing Capabilities

4.1. **Content Strategy**

4.1.1. - Created Spotify Original podcasts as exclusive content

4.1.2. - Promoted lo-fi and ambient music to reduce royalty costs

4.1.3. - Implemented vertical video "reels" for music discovery

4.1.4. - Established exclusive temporary release deals with artists

4.2. **Platform Innovation**

4.2.1. - Redesigned interface to incorporate vertical scrolling video features

4.2.2. - Added countdown features for album releases

4.2.3. - Developed collaborative playlist and live sharing capabilities

4.2.4. - Integrated concert discovery features

4.3. **Strategic User Acquisition**

4.3.1. - Adopted a permissive approach toward modded apps

4.3.2. - Targeted "pirated" users with attractive discount offers

4.3.3. - Built brand loyalty among younger users before they become paying customers

5. Transforming Capabilities

5.1. **Community Building**

5.1.1. - Created features for real-time music sharing and collaboration

5.1.2. - Transformed from pure music player to social music platform

5.1.3. - Developed community features around live music events

5.1.4. - Established direct artist-fan connections through exclusive releases

5.1.5. - Resume of your Year of music

5.1.6. - Voice that describe and introduce a song and when you played. It's like your personal radio speaker

5.2. **Business Model Evolution**

5.2.1. - Shifted from pure streaming to content creation and curation

5.2.2. - Diversified revenue streams through podcasts and exclusive content

5.2.3. - Built long-term user relationships through social features and human-tech relation

5.2.4. - Created ecosystem lock-in through community and social features

6. This analysis shows how Spotify continuously adapts its platform and business model to maintain competitive advantage in the evolving digital audio landscape, with particular focus on capturing and retaining young adult users through social features and community building.