Danielle de Ferrari Sarah de Ferrari Source: Spotify Source: - - PowerPoint PPT Presentation

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Sep 18, 2023 634 likes •922 views

Bryce Simantel Christine Osazuwa Danielle de Ferrari Sarah de Ferrari Source: Spotify Source: Spotify, 2014 Source: Mashable, 2013 Source: Spotify, 2013 WEAKNESSES STRENGTHS High frequency in audio & visual Supports the

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Bryce Simantel Christine Osazuwa Danielle de Ferrari Sarah de Ferrari

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Source: Spotify

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Source: Spotify, 2014

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Source: Mashable, 2013

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Source: Spotify, 2013

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STRENGTHS

Supports the music industry
Re-growing the industry
Ease of use
Available songs
Offline listening
Giving record labels equity

WEAKNESSES

High frequency in audio & visual

advertising

Subscription fee above industry

standard

70% of Revenue to Royalties
Artist relationships

OPPORTUNITY

Global Expansion
Combat Piracy
More robust free option
Offline music related projects
Paying more artists directly

THREATS

Pirated music
Cannibalizing consumers
Losing record label support
Losing artist support
Prolonged sustainability
Legislation

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Industry Rivalry

Threat of New Entrants Bargaining Power of Buyers Threat of Substitutes Bargaining Power of Suppliers

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Digital source sales grew by

7.6%

2013 Physical Format Sales Down 12.3% in US

Source: Billboard, 2014

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Source: RIAA, 2014

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Source: Nielsen, 2013

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38% 40% 42% 44% 46% 48% 50% 52% Ability to skip songs Wider selection Create radio stations Easy to use Available on device Hear favorite songs Source: Edison Research, 2013

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Eliminate

Limited number of skips
Need for internet access to use

service

Listening hour limitations

Reduce

Advertisements
Undesirable or unwanted music
Buffering times for songs

Raise

Sound quality (especially on

mobile)

The catalogue of accessible

music

Social network integration

Create

Ability to generate playlists
On-demand song choices
Ability to rewind and fast-

forward music

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6 4 8 9 10 9 9 10 7 3 8 7 3 6 5 4 7 10 6 7 3 6 5 4 2 PRICE USER BASE PLATFORMS CATALOGUE ON-DEMAND MUSIC UNLIMITED ACCESS SOCIAL MEDIA INTEGRATION SOUND QUALITY OFFLINE ACCESS Spotify Pandora iHeartRadio

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Purchase Delivery Use Support Maintenance Disposal Customer Productivity Simplicity

♪

Convenience Risk Fun & Image Environmental Friendliness

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Purchase Delivery Use Support Maintenance Disposal Customer Productivity Simplicity Convenience

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Risk Fun & Image

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Environmental Friendliness

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Unique to the Industry

Price User base Supported Platforms

Common to the Industry

Catalogue On-demand Unlimited Access Social Media Integration Sound Quality Offline capabilities

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Maintain Artist & Label Buy In Generate additional revenue streams Incentivize advertisers Achieve “Lifestyle Brand” Status

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Generate additional revenue streams Maintain Artist & Label Buy In

Source: Next Big Sound, 2012

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Incentive Advertisers

Source: Business Standard, 2014

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Music streamers are 50% more likely to be heavy spenders on event tickets.

Generate additional revenue streams Achieve “Lifestyle Brand” Status

Source: Nielsen, 2013

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Of the 12% of musicians who earn any income from merch sales, it makes up 16% of their total average income.

Generate additional revenue streams Maintain Artist & Label Buy In

Source: Future of Music, 2012

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Sean Parker’s “Hipster International” playlist is attributed to pop singer, Lorde’s breakout success.

Achieve “Lifestyle Brand” Status

Source: Forbes, 2013

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Maintain Artist & Label Buy In

Spotify Premium Royalties Are 10 Times Greater Than Free, Ad-Supported Royalties

Source: Digital Music News, 2013

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Global mobile music revenue is predicted to rise by 1.5% through 2018, driven by countries such as Nigeria (21%), Malaysia (10%) and China (8.5%).

Additional revenue streams Achieve “Lifestyle Brand” Status

Source: PWC, 2013

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