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Company Project : Spotify AB

Table of content

Introduction : p.3
1- : Historic and relation wih majors : p.3
1.1 Historic : p.3
1.2 Relation with majors : p.3
2- : The way its product is produced and marketed : p.4
2.1 A service : p.4
2.2 Three offers : p.4
2.3 Position on the market : p.5
2.4 How the product is marketed : p.6
2.5 An international offer : p.8
3- : Its objective and the evolution of its financial results over the last 2 years : p.9
3.1 Figures : p.9
3.2 France : An exceptional case : p.10
3.3 The global situation : p.11
4- : The organizational form of the business : p.11
4.1 A muting company : p.11
4.2 A functional organization : p.12
4.3 A geographical division : p.12
4.4 A
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This model is quite common on the internet with streaming music providers (Spotify, Deezer) but also in video games with free-to-play games. Regarding Spotify the freemium model is composed of three offers :
-The first one completely free where users have the basic functions (listening to music on computer, with advertisement)
-The Unlimited offer where users no longer have the advertisement restriction but can only listen on their computers : 4,99€/month
-The premium offer where users have no restriction and can listen on every device (computer, smartphone, tablet) without internet connexion needed (music is stocked in the cache of the device and is available thanks to data synchronisation) : 9.99€/month
It should be noted that, in France and only in France, in the first offer the unlimited music (with adds) is not completely unlimited. Indeed, six months after the registration on Spotify (the registration is mandatory to listen to music) there is a time limitation, users will not be able to listen more than 10 hours of music per month and can’t listen a track more than 5 times. However it 's easy to bypass this restriction by creating another account with another e-mail address. Thus, it is not this time restriction that will particularly push the customer to upgrade their account.
Furthemore the upgrade from the first offer to the Unlimited or Premium offer entails an upgrade of the sound quality from 160 kbit/s to 320 kbit/s. Again, it is not this specific
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