Spotify, we surely know what Spotify is and what they provide. Nearly everyone who listens to music would either have heard of it, if not have it in their applications. You may be using Spotify right now as you’re reading this blog. The business model used by Spotify is the subscription model, this service provides high quality music that can be listened through online and offline. Spotify also use the ‘freemium’ take, that leads on customers with their Ads after a couple songs being played. They also have a their ‘Premium Plans’ that caters to everyone, including family plans and student plans for them pesky savings that we enjoy. This entices different choices in their service giving that premium option unlimited downloads with better quality sounds compared to the free to listen option by does come in with annoying Ads that pop-up every now and then.
With Spotify’s rise to dominate the music stream market, its competitor like Apple Music, Spotify has a better user interface when it comes to music genres for customers. Having to include Radio stations and Playlists have a massive impact for customers that are always ready on the go with constant updated music when the open the application.
As mentioned, the business model that Spotify uses is the subscription model and the freemium model, to source that revenue stream. Approximately 170 million monthly active users as of May 2018 with 99 million people use ad-supporter free tier and 75 million paid subscribers that uses the premium subscription which generated €1.14 billion according to The Verge. As you can see, the market is massive and is perfect for such a streaming service that constantly is updated with its key partners, key activities, value proposition, etc.
For my support for both music platforms, I like to go back and forth with both applications because I like to have more of a variety with my taste of music. Using Spotify for my playlist tunes and Apple Music for those exclusive songs. But hands down to Spotify for them legendary playlists that are ready to be downloaded, because surely both the freemium and subscription model are certainly Spotify’s selling point!
What are your thoughts on Spotify’s big feature that separates from their competitors? Do you like me, go switching back and forth different streaming services? This can not just be Apple Music, this can also even be YouTube!
Joseph's Blog 
Hey Joseph, great post! I personally prefer Spotify than other streaming services as they provide features like premium plans that you have mentioned above, which we could listen to unlimited songs without the annoying ads as well as the daily mixes that specially made for us. Besides, the student and family plans Spotify offers has got my attention which I find it beneficial for consumers to enjoy the streaming music at a lower cost.
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Hey Junni! Thanks for your comment! I really do like the idea of what Spotify has done in terms of their use of their app. For one including an ad run time if people didn’t buy the premium which people are still able to listen to music through Spotify. But it’s good to see Spotify to include a way to have consumers to still tune in regardless.
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Hey Joseph, very interesting read on online music applications! I agree with your point on how the majority of music lovers more often than not, either currently use the application or have it sitting somewhere on one of their devices. Spotify is such a convenient and easy to use music application as it has a lot of popular and new release songs where they especially perform well in utilising the subscription model. I personally use the family package where me and a few friends have decided to split the payments to save a little money as this is quite convenient for all of us. I also like to hop between platform to platform when listening to music as I am also a heavy user of Sound Cloud and YouTube!
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Hey Matthew! Thanks for the comment. definitely Spotify has developed a great marketing strategy that would include non-subcription buyers and buyers who buy the premium subscriptions. A great tip that you pointed out is people who aren’t students and get the family subscription, and people would split the payments equally to make it cheaper. Good to see consumers being smart it comes to cost!
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Great blog post here Joseph! Personally I use just Spotify to stream music. It’s such an convenient app! Some other apps does not have all the songs I want to listen to, however with Spotify have all kind of artists and songs from indie to modern. Also the deals Spotify offer are unbeatable compared to its competitors especially with family and student deals!
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Hey Andy! Thank for commenting. It’s good hear your thoughts about Spotify and recognizing how convienient it is. As you mentioned deals is something that everyone is what has people praising for, it’s important that Spotify is on top of their game when it comes to competitors, especially Apple.
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