Did You Know? There are over 50 million tracks available to listen to on the Spotify app.
Spotify is the largest media streaming service in the world. So, it would not be a surprise if you are already using Spotify. For listening to the music of various kinds, artists, and genres, it is one of the best mediums right now.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Spotify.
Spotify At A Glance – Spotify SWOT Analysis
Company: Spotify Ltd.
Founders: Daniel Ek | Martin Lorentzon
Year of establishment: 23 April 2006, Stockholm, Sweden
CEO: Daniel Ek
Headquarters: Stockholm, Sweden
Employees (Dec 2020): 6,550
Ticker Symbol: SPOT
Annual Revenue (Dec 2020): EURO€7.88 Billion
Profit net income (Dec 2020): EURO€2,501 Million
Products & Services: A Digital music | Podcast | Video service
Company Website: www.spotify.com
Top Spotify Competitors
Competitors: Apple Music | Amazon Music | YouTube Music | Google Play Music | Pandora | Soundcloud | Deezer Music | NAPSTER
Spotify SWOT Analysis – SWOT Analysis Of Spotify
SWOT Analysis Of Spotify analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Spotify SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Spotify SWOT Analysis. Below Is The Detailed SWOT Analysis Of Spotify.
Spotify Strengths – Spotify SWOT Analysis
1. Good and Solid brand reputation: Spotify boasts a solid reputation for its brand. It is among the most used app for listening to music. Additionally, it is the most well-known. It’s well-known and assists them in their field of marketing. They often leverage the value of their brand to benefit themselves. The value of the brand Spotify has grown by 52%, and the company has an estimated net amount of $8389million by 2020. It also placed 70th on “The Best Global Brand” in the same year.
2. Advantage of early mover and a great lead Spotify is among the few companies who entered the world of music streaming at the beginning of its development. This gives them an enormous advantage that other newcomers to this industry don’t enjoy. They are more knowledgeable than any other. They have earned the place by providing high quality music services. It has accumulated a large market share.
3. A vast music library: Spotify provides its users with a wide selection of music that other platforms might not offer. It is home to around 70 million songs and two million podcasts on its digital library, and that’s just a an estimate. It also releases daily 40,000 new tracks. It is a big draw for fans who want access to this library.
4. User-friendly: Spotify has often been regarded as a very user-friendly. The large amount of songs, random information regarding an album as well as lyrics for some songs have been instrumental in making Spotify very popular with its audience. It has employed algorithms and AIs to create a great experience. It personalizes playlists and proposes new playlists, songs, and artists based on it. The estimates suggest that listeners are spending a third in their listening time to the playlists offered by Spotify.
5. A large users: The millennials constitute the most likely users for this company. It has been observed that they support this platform. An analysis has revealed that the majority of American young people spend time playing Spotify.
Spotify Weaknesses – Spotify SWOT Analysis
1. High-priced premium service: Even though Spotify offers its users many options in the music field however, it is not always able to provide high-quality services. For instance, Spotify users are unable to listen to one track of their choice by themselves. They must play the songs in the form of shuffled playlists. If anyone wants this privilege, they have to pay for the membership. In truth, the majority of people do not want to shell out this much to enjoy music.
2. Depends on the connectivity of the internet: The free version of Spotify relies heavily of the web. If one isn’t connected and has no internet connection, they are unable to browse the site. But, users with an account with a premium subscription can get their preferred songs accessible offline. Even so, they cannot access the website.
3. Artists who are not interested: Spotify pays a extremely low percentage of their revenue to artists. The artists make around 0.00318 dollars each time someone plays their music. It is therefore an easy bet that they’re paid a slack salary for their talent. Some other platforms pay more than this. Some earn more than this through selling CDs. This is a big deal considering that few people purchase CDs anymore. This is why some artists aren’t interested or are removing their works from this site.
4. High royalty rates: Spotify has to divide its earnings among other entities that contributed to the creation of the music. Examples include the publishers as well as the composers, copyright holders record labels, etc. They are charged a substantial quantity of dollars. Based on an estimate, they have to invest around 75% of its profits on this.
Spotify Opportunities – Spotify SWOT Analysis
1. Podcasting: Recently, people have been gradually beginning to become attracted to podcasting. They are experimenting with it at their own will. The growing number of users using podcasts suggests there’s a huge opportunity for businesses. Therefore, Spotify is preparing itself to play its toes when an opportunity presents itself. This is the reason why they’ve including podcasts into their library.
2. Streaming videos: There is a widespread belief that the streaming of video is the most well-known industry in the world today. It could be true since numerous estimates indicate that it could rise to 71,237 million dollars when 2023 comes to an end. Therefore, joining this market will certainly boost the value of Spotify’s market share by leaps and bounds.
3. Endorsements: Different celebrities have an enormous influence on trending products and trends online because they have an enormous following or fan base. This could assist Spotify to increase their efficiency. Since every time a famous person is involved in the app, the engagement of the app increases by around 4 percent.
4. Market expansion: Spotify has spread its services to a variety of countries. They are able to expand their services further. They could cater to users of laptops, computers as well as tablets. They could also increase their audience by including older generation in their target audience. Through the inclusion of and expansion of songs from the early 1970s or at the time they were released, they could effectively entice older generations. By reducing the user interface, a small tweak could be beneficial.
Spotify Threats – Spotify SWOT Analysis
1. Copyright: In this modern moment it’s easy to sneak in and take over content from another. This is particularly evident in Spotify which is just like YouTube. The creators of content are forced to pull their content off Spotify.
2. Criticism: With many creators and musicians pulling their content from the site Many people are beginning to critique the site. From fans to professional critiques and business professionals to artists Everyone is beginning to highlight the issues and security concerns. This isn’t great for the image of Spotify.
3. Security concerns: Spotify has been slightly slow in its security improvement. Because it is a huge platform with thousands of unique content it’s a popular attack target for hackers. There was a hacker identified as “Daniel” who was able to gain access to the server. In addition, there are a number of Spotify accounts on the black market that are available for purchase.
Spotify SWOT Analysis Template
This is the SWOT report that Spotify has done. Please let us know if you have additional suggestions to add.
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