By JAKE REES EECS 441 SPOTIFY

PRODUCTS

•  “Freemium” Service •  Curated playlists, music recommendations, and radio •  40 million paid subscribers, 100 million active users

¡ Annual Revenue: $2.18 Billion in 2015

¡ Net Income: loss of $194 million

¡ Valued at: $8 Billion

FINANCIALS

Financials (in Thousands of Euros)

¡ 37% market share for streaming services

¡ Royalties to Major Labels

¡ IPO in 2017???

FINANCIALS

Financials (in Thousands of Euros)

FINANCIALS

¡  Paid Subscriptions ¡  Third Party Advertisements - $110 million in 2014 to $220

million in 2015

BUSINESS MODEL

¡ Founded in Sweden in 2006

¡ First launched in 2008, available in UK in 2009

¡ Launched in USA in 2011

HISTORY

Martin Lorentzon and Daniel Ek, Founders

¡ Tried several different subscription models

¡ Raised millions of dollars in funding ($500 million in Jan. 2016)

¡ Plans to go public in 2017

HISTORY

Martin Lorentzon and Daniel Ek, Founders

WHAT’S HOT???

525 Million Streams 31.3 Million Monthly

Listeners

Holdouts?

SECRET SAUCE

Discover Weekly Easy to use, Social

Free Option

COMPETITION

•  30 million songs •  Free and Paid options •  Weekly discovery

playlists and curated playlists

•  Social Media integration

•  Intuitive interface

•  30 million songs •  Free trial, but only paid

option •  Exclusives- Drake,

Radiohead, Frank Ocean, Taylor Swift

•  Suggestions based on user tastes

•  “Unintuitive” interface

•  25 million songs •  Free trial, but only

paid option •  $19.99/month high

quality option •  Exclusives – Kanye

West, Beyonce •  Higher artist royalites

¡  Cut unnecessary costs after IPO ¡  Subscriptions + Advertisers = GROWING ¡ Will beat out TIDAL, sustainably compete with Apple Music

PREDICTION? IT WILL SUCCEED!