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5 Forces Spotify

In: Business and Management

Submitted By ersit
Words 2446
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1.DEGREE OF RIVALRY
Spotify faces a moderately high competition. The number of rivals is seeming to increase as the disruption initially created by the technology seems to settle and competitors start to imitate and accommodate their offerings. The competition is not necessarily in price and tends to balance on the side of the premium services offered.
Competitors Profiling
Spotify’s biggest rivals are
Apple Music — Based on what was before Beats Music. Includes a paid service, a live radio station called Beats 1 and a social component. It is available on over 100 countries and available on Apple devices as well as Android or Windows operated gadgets. The fees charged are $9.99 for a single license or $14.99 for a family license.
It does not have a free version, but offers three month trial.
Pros: Playlists are made by experts, not algorithms. Apple Music users have access to new tracks and videos uploaded by artists themselves. Has Taylor Swift's blessing, after a reversal on royalty payments.
Cons: The features are not wildly different or better than Spotifyàs or Rdio’s so it is hard to justify Jimmy Lovine’s (Apple music excecutive) service will be "revolutionary." But it could still use its clout to bring streaming to the masses. Thus increasing the degree of rivalry in the market to the detriment of overall profitability.
Tidal Jay Z bought for $56 million in 2015 and the service is available in over 44 countries. It costs $9.99 a month for normal streaming and $19.99 a month for high-fidelity sound quality. It does not offer a free version and the trial period is a mere 30 days. In March 2016, Tidal announced it has over 3 million subscribers. Of those 3 million subscribers, 1.35 million are paying for Tidal's $19.99 Hi-Fi offering, according to Billboard
Pros: Tidal bets exclusive tracks, videos and concerts can entice users, though analysts...

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