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2017 | OriginalPaper | Chapter

12. Passion for Music: The Case of Spotify

Authors : Kai-Ingo Voigt, Oana Buliga, Kathrin Michl

Published in: Business Model Pioneers

Publisher: Springer International Publishing

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Abstract

The powerful changes in the music industry since the launch of the MP3 format in the early 1990s brought both benefits to consumers, and angst to the industry players, since music became extremely easy to share. The major record companies suffered huge losses, as a series of illegal file sharing websites, also referred to as peer-to-peer-systems, emerged, Napster being one such example. Spotify launched its online platform in 2008, with the aim of becoming a worldwide alternative to illegal music sharing. The company is part of a group of evolving music streaming businesses, which experiment with different revenue logics and customer approaches. The business models based on subscriptions and freemium offers address an audience with shifting preferences, from owning music to being able to access music conveniently, fast, and regardless of location. Although Deezer preceded Spotify as the first freemium music provider, the latter distinguishes itself through the variety in titles and playlists, usage simplicity, close contact to social media and commitment towards long-term growth.

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Footnotes
1
Among these were EMI, Polygram, Sony BMG Music Entertainment, Universal Music Group and Warner Music Group.
 
2
Rights holders include labels, publishers, distributors, and independent artists themselves.
 
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Metadata
Title
Passion for Music: The Case of Spotify
Authors
Kai-Ingo Voigt
Oana Buliga
Kathrin Michl
Copyright Year
2017
DOI
https://doi.org/10.1007/978-3-319-38845-8_12

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