Spotify’s Journey to Success
The Swedish media company, famously known as Spotify, has made strides in the world of music, acquiring over 100 million active listeners and over 40 million paying subscribers. Spotify does not offer a unique product. There are plenty of apps and websites where one can stream music, but none of these are as popular as Spotify. Why is that? The company has done tremendously well in terms of customer satisfaction and providing music-sharing features, along with an endless supply of music streams, which none of its competitors have done. The company has differentiated its market offering and positioned itself in a way that makes them stand out! To the point where music and Spotify have become synonymous terms.
Spotify has an unparalleled data collection methodology that allows it to track exactly what the user is listening to – what they like and what they dislike. The company also tracks the kind of music each user prefers listening to depending on their mood, and what genres they listen to depending on the time of the day. All trends in data are important, and none are ignored. All of the trends are incorporated in formulating an enhanced and personalized experience for the user so they feel seen. The phrase “customer is king” is taken very seriously!
In 2017, Spotify spent the entire year securing royalty deals from all major record label deals. While the exact amount is unknown to the public, the expenditure clearly paid off. As in the year following the deals, they reported a 52 percent increase in revenue. The company, however, has not stopped here and they plan to continue growing through unique strategies. Their aim is to acquire more artists now through initiatives such as Rise. Spotify offers the work of new artists to be integrated into existing playlists!