Topic > Technology Analysis: Spotify and the Music Industry

IntroductionYou probably can't avoid music streaming services these days. Every smartphone on the market can handle numerous music streaming applications, ranging from radio-style streaming, to on-demand streaming, and even cloud streaming. Smart TVs are equipped with Spotify, Pandora or Rdio. AT&T partners with Beats Music to offer a unique on-demand music streaming service with DJ-performed playlists. It seems that with the advent of Wi-Fi hotspots and high-speed mobile Internet services, music streaming is increasingly becoming a mainstream part of life. Spotify has been in the spotlight in this particular segment of the streaming industry since its introduction in the United States in 2011. (Roose, n.d.) What is Spotify? Spotify is an on-demand music streaming service that provides a two-tier service to its users. The free service allows users to listen to any song on demand within the application's music catalog, but with the presence of advertisements. The premium service, however, is completely ad-free. Launched in 2008 in Sweden, Spotify has grown and currently has over 24 million active users. (Sisario, B) Following various agreements stipulated with EMI, Sony, Universal and Warner Music Group, Spotify currently holds a music catalog of approximately 20 million songs. Since 2013, Spotify has been available to its users on Android devices, Apple iOS (iPhone and iPad), Roku, BlackBerry, Windows desktop, Mac OS (See Appendix A) When using the Spotify desktop client, the software actually allows the user to select their iTunes music library and import it from iTunes to Spotify. The user then has the option to synchronize their music with a mobile device. (...... middle of paper .......com/2014/04/30/business/media/spotify-teams-with-sprint-on-a-mobile-music-plan.htmlSpotify's Time. (n.d.). Music Business Journal Berklee College of Music RSS. Retrieved May 21, 2014, from http://www.thembj.org/2014/05/spotifys-time/Team, T. (2014, April 23). Earnings: Profitability Will Continue to Improve Forbes Retrieved May 21, 2014, from http://www.forbes.com/sites/greatspeculations/2014/04/23/pandora-earnings-preview-profitability-will-continue- /Appendix Mobile availability of ASpotifySource: cdn.comAppendix BBrief evolution of SpotifySource: Spotify.comSource: musicindustryblog.comAppendix Comparison of CSpotify servicesSource: BusinessInsider.comAppendix DComparison of on-demand streaming music servicesSource: cdn.com