![]() ![]() The company invested $1,135 million in sales and marketing in 2021 according to its annual report 2021, which was 10% higher than the previous year. However, it also invests in advertising and promotions to drive increase in brand awareness, user base growth and to improve its premium subscription rate. The popularity of its services is particularly high in the western markets including the US, Latin America and Europe.Ĭompany enjoys strong brand awareness in most corners of the world including the Asia Pacific region. It has been able to establish itself as a unique music streaming platform that enjoys solid popularity worldwide in various markets. ![]() The company’s focus on excellent user experience and customer friendly pricing strategy have led to fast growth in its user base. Spotify has adopted a digital business model, which is different from any traditional radio service and the other music streaming services providers. Its freemium pricing strategy has worked well to drive higher subscription rate and growth in user base and revenue. The premium segment is the larger source of revenue for the company. The number of premium subscribers of Spotify’s online music streaming services underwent impressive growth in 2021 and rose from 155 million in 2020 to 180 million 2021. It offers Standard plan, Family Plan, Duo Plan, and Student Plan to its customers globally. The company offers various types of premium plans based on the end of specific customer segments. At the end of 2021, the company had around 406 million monthly active users including around 180 million premium subscribers. Its pricing strategy is a mix of premium and ad-based pricing strategies. Spotify follows a very different business strategy compared to the other inline streaming platforms including music and movies streaming networks. The United States is its largest individual market based on net revenue. Its largest market based on number of monthly active users is Europe. In 2021, it launches its services across 80 new markets in Asia, Africa, the Caribbean, Europe, and Latin America. People across 184 countries and territories can avail of its services using the internet. The company offers is services online through its website and app. The company has its headquarters located at Stockholm, Sweden. Its legal name is Spotify technologies S.A. Spotify is a Luxembourg company that went public in 2009. The focus of its research and development efforts is also to improve user engagement on its platform. In 2021, it spent around $915 million on research and development. Its invests heavily in research and development to increase the effectiveness of its platform and products. The company has entered into licensing agreements with several music brands for the tracks owned by them. There are more than 3.6 million podcast titles on Spotify. However, its product range is not limited to just musical tracks but it also offers podcasts. It is quite a large collection and therefore, Spotify suits the needs of a large segment of customers across the globe. It stores more than 82 million tracks in various languages and across several genres to the cater to the needs of its customers worldwide. Music is the core product offered by Spotify. 7 Ps in the Marketing Mix of Spotify Product: The company mainly converts its ad based account users into premium subscribers. ![]() It has 406 million monthly active users and more than 180 million premium subscribers. It has adopted a different business model compared to the other online music streaming channels.Īs a music streaming network, Spotify has enjoyed excellent growth in the recent years. Instead of buying and owning music, customers can access music on Spotify whenever and wherever they like. The music streaming platform stores more than 82 million tracks including more than 3.6 million podcast titles. Driving the growth of the company are technology and customer experience and people’s need for entertainment worldwide. Spotify is one of the leading names in the world of digital entertainment that has acquired global fame swiftly despite being challenged by formidable competitors including leading names like Google, YouTube, Amazon and Apple. ![]()
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