Spotify Case Study: Exploring Music Industry and Its Development

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This case study examines the development and impact of Spotify on the music industry. It discusses how Spotify, created by Daniel Ek and Martin Lorentzon, addressed the challenges of music piracy by offering a legal streaming service. The case study highlights the evolution of Spotify from its inception in Sweden to its global presence, analyzing its role in providing music access and sharing, and its influence on the music industry's shift towards digital platforms. The assignment also references the importance of legal solutions for music consumption and the entrepreneurial motivations behind Spotify's creation. Furthermore, the case study references a research paper that provides insight into Spotify's business model and its influence on the music industry.
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The current case study is based on the development of Spotify. Spotify was created by two
Swedish entrepreneurs, Daniel Ek and Martin Lorentzon, who have proficiency in internet and
communication technologies (BISSONNETTE & BRUNELLE, 2015). The Spotify can be
described as an on-demand digital music streaming service. Using Spotify, the consumers in the
Music Industry can access the music legally from a collection of approximately 30 million
pieces. The Spotify services can vary on the basis of the host country of the consumer. In
addition to listening to music, Spotify also enablesthe customers to share music with others.
Spotify was developed in 2006 when its two creators decided to create a technological solution
for the consumers in the Music Industry. Spotify was developed in Sweden. In 2008, the
technological solution was launched in Sweden, Norway, France, Spain and the UK. Later, the
solution was made available in Denmark, Finland and the Netherlands. Finally, Spotify was also
launched in the US and thus, it became available to the global music industry. Spotify was
developed to put an end to piracy in the music industry. In 2006, the availability of pirated
music was high in the industry. the software was available which enhanced the growth of pirated
music industry. The key reason behind the development of Spotify was providing the customers
in the music industry with a solution to access and share the music legally. Daniel Ek and Martin
Lorentzon developed Spotify after being influenced by the pirated software. The two
entrepreneurs analyzed how the pirated software works and then focused on mitigating the gap
with a legal solution.
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References
BISSONNETTE, J., & BRUNELLE, E. (2015). Legal and Profitable? Spotify: The Challenges
of an Online Music Service. Internaltional Journal of Case Studies in Management, 13(3), 73-90.
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