How Spotify Kickstarted a new sector in the online market and how budding entrepreneurs can get into it
Spotify is the powerhouse when it comes to the music streaming business. Their mobile application is super-responsive, minimalistic, and available on multiple platforms. Being a small-sized company compared to giants like Amazon, Google, and Apple, they still manage to overshadow them in the music streaming business. There is no doubt that Spotify is the global leader when it comes to music streaming. Despite a large number of users, Spotify is still struggling to make massive profits.
How Spotify was born:
Spotify is a creation of Swedish entrepreneurs Daniel Ek and Martin Lorentzon. They initially started Spotify as an answer to stop online piracy and to capitalize on the market potential. They created Spotify intending to make things easier for the users. It was started in 2006 when online piracy was marching towards its peak, and iTunes charged people 99 cents for a single track. They created a perfect app that strikes a balance between compensating the music industry and better than piracy.
Just like every other innovative service, Spotify stumbled in its initial days. Initially, the app did not have a global launch, as the creators found difficulty convincing the record labels. After a few years of dominance in the European market, the duo set their eyes on the United States. They were able to bring Sony Music, Merlin, Warner, and Universal Music Group on board. Users loved their services, and Spotify became a massive hit in the American market.
The current market scenario:
Although Spotify was the first to step into the on-demand music streaming business, other providers like Apple Music and YouTube Music entered the market. Yet, Spotify managed to hold their position as they offer free music streaming for everyone. However, users should pay for high-quality audio, offline listening, and ad-free listening. Currently, Spotify has the highest conversion rate than any other provider and has over 100 million subscribers now. They dominate other streaming services in terms of their strong AI integration and intuitive user interface.
Spotify offers more than just mobile applications; it has spread to wearable devices and cars. The powerful integration of AI makes it easier for users to get recommendations. Spotify offers “Daily Mixes,” and it gets updated every day with fresh tracks. The integration of social media plugins has taken the user experience to another level as it lets friends create playlists together.
What it means for budding entrepreneurs:
Spotify took the music industry by storm and also inspired several entrepreneurs worldwide. If you are an enthusiastic entrepreneur with plans to develop an app like Spotify, invest in research, build a better platform, and focus on satisfying your customers’ needs. Research the market to learn more about your target audience’s requirements and focus on the aspects of improving user experience.
If you can integrate exclusive features on the app, you can increase your platform’s inherent value as a whole. Ensure that you have a unique value proposition to outshine your rivals.
