Industry/PESTEL
What was one aspect of the shift from physical music to digital downloads?
Piracy reduced paid consumption
What price is Spotify Premium?
$9.99 per month
What album sparked the conflict?
1989
What % of label power do Universal, Sony, and Warner (major labels) control?
80%
What popular annual recap boosts engagement?
Spotify Wrapped
Which PESTEL factor deals with copyright laws and Napster lawsuits?
Political
What model funnels free users into paid?
Freemium funnel
Why did Spotify decline requests from Big Machine?
They violated Spotify’s equal-access & freemium policies. (clashed with policies)
In Five Forces, why is supplier power high?
(Major labels control 80%)
(Labels receive 70% of revenue)
(Artists can defect or window)
What is Spotify's biggest core competency?
Superior User Experience (Personalized recommendations)
What social trend pushed people toward streaming?
Instant access & music should be free mentality.
What percentage of Spotify’s revenue goes to royalties?
About 70%
Name 1 request Big Machine made.
Premium-only release or geo-restricted release
Name one major Spotify competitor.
Apple Music, YouTube, Pandora, Deezer, Beats
What type of data makes Spotifys system hard to imitate?
User listening behavior data
What technological shift enabled streaming to explode?
Smartphones (-->personalized algorithms)
Name 1 premium-only feature
: Offline downloads, no ads, higher audio quality, full control
What strategy was Spotify protecting during the dispute?
Consistency - No special treatment
Name one Strength from the SWOT analysis.
Large user base, strong brand, freemium funnel.
How does Spotify use its listening data to help artists?
It identifies rising artists and provides insights like artists to watch
What major consumer behavior changed as digital downloads became popular?
People stopped buying physical music (CDs/vinyl)
What's 1 way Spotify differentiates itself competitively?
Personalization, global reach, social features, hybrid model
What concern did Spotify have after Taylor Swift pulled her catalog?
That other major artists might follow and leave the platform too.
What gives Spotify leverage over users?
Personalized recommendations based on data
What part of the network effect loop increases as recommendations improve?
User engagement