Free Essay

Spoti

In: Business and Management

Submitted By cetoceto
Words 262
Pages 2
SWOT SPOTIFY STRENGHT | WEAKNESSES | ● Ad revenue guaranteed from streaming service.● Large music base to attract and maintain users. (playlists are easily created, have choice of any music and listen music for free)● Support on many platforms to ensure as many users have access as possible. Spotify connect with Facebook so that you can share your music through there● Well known with impressive branding | * Dependent on artists to publish updates and new albums.● Relies on mass advertising for income.● Heavily reliant on positive relationship with artists.● Technical difficulties can cause large scale revenue and reputation loss.● Some artists shy away from the small returns.● limited offline use for non prenium users: have to pay £10 a month to be able to use it, which some people may not want to do considering you can use iTunes for free.● Advertising hinders uptake from customers. | OPPORTUNIY | THREAT | -Higher quality content could be delivered through an ever improving mobile and broadband network.● Attractive to many artists who are afraid of piracy because of its proven user base of paying accounts.● Growing user base of users demanding online streaming.● Mutual benefit from anti-piracy support between artists and Spotify | - Many competitors who also have large music and user bases such as Amazon and iTunes. Apple are big contenders and are rated number 1 for almost everything, so Spotify will have to compete with this with great difficulty● Difficult to appease customers and clients at the same time with low fees and low returns for clients.● Lack of artist choice in premium service has limited uptake. (Engel) |

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