Publications

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Marketing Plans

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Spotify 2020 Marketing Plan

Executive Summary

Spotify has a foothold in the sector that has and is holding the music industry up. A once struggling music industry has been saved by music streaming. Until music streaming stepped in, music industry revenues had been on a steady decline for the past millennia. Since 2015, the phoenix out of the ashes has been music streaming. In 2008, side-by-side the release of the iPhone, Spotify released it’s music streaming service. Music stakeholders worldwide rejoiced. Since, many competitors have joined the music streaming space such as Amazon and Apple. While these two are commonly known for their extremely high market capitalization, Spotify, has special attributes to set it apart.

Spotify is unique because of its support from a loyal fanbase, brand equity, nimbility of a smaller sized company, and creative roots. It is not without faults though. Spotify has an increasingly important problem of being reliant on third-parties for its app. This has caused issues with Apple and resulted in lawsuits. Spotify’s business is solely focused around the internet. Ideally, they move these eggs to more baskets. There are also issues with rights owners and royalties for everyone involved in the making of music listed on Spotify. In music, there has always been a tug-of-war for the slim revenues of music sales. They are not without options of expansion though. Spotify can open its gates to more content on its app like emphasis on podcasting, partner with larger companies, and create physical products for diversification. Through time, Spotify must be aware of the competition's moves against its business model and the dissatisfaction of artists and their streaming royalties.

To combat an increasingly competitive sector of the music industry, Spotify can implement three short term goals along with a long term overarching goal. Spotify should emphasize resources on emphasis of their podcast section. In a long term goal of spinning off podcasts onto its own app. Spotify should also implement live events to diversify its revenue stream. Last, to compete with Apple and Shazam, Spotify should purchase Sony’s TrackID music recognition software to integrate within the Spotify app.

Long term, Spotify should look to create its own music universe. This includes launching its own proprietary social media platform. This would allow users and artists to connect more meaningfully and allow for fans to snowball into Spotify’s own live events. Artists would appreciate this as donations are now available on the app and users would appreciate the genuine and exclusive content that artists would be brought only to Spotify’s new social media platform.