COMPANY ANALYSIS

58 Markets

COMPANY ANALYSIS

2009 2010 2011 2012 2013 May 2014 Nov 2014 Dec 2014 0M

20M

40M

60M

60m Active Users

15m Premium Subscribers

Free Premium

Play any song

Download music & listen offline

No Ads

Better sound quality

Shuffle any Artist on mobile

Streaming made Possible by ads

Skip 6 times per hour on mobile

COMPANY ANALYSIS

COMPETITOR ANALYSIS

Budget Generic Product Brand

US MARKET

OBJECTIVES

EDUCATION Educate the audience by demonstrating that listening to music for free can

provide benefits for both listeners and artists.

VALUE Regenerate the lost value by converting music fans from poorly monetized

formats to their paid streaming format.

CONVERSION The objective of Spotify is then to convert these free users into premium

users, as 75% of its total revenues comes from the subscription fees of

premium account members.

STRATEGIES  

Increase  free  users    

Invest  in  deepening    partnerships  

Accelerate  conversion    based  on  user  data  

Make  ar=sts’  analy=cs  ac=onable  

JUSTIFICATION FOR STRATEGY SELECTION

1. Spotify subscribers grew to 15 million worldwide up to date

2. Most significant growth has been in the US paid subscription

revenues rising 57% in 2013

3. Spotify’s rapid growth was even more accelerated by the

launch of the free service on mobile phones.

According to Daniel Ek, 80% of all subscribers that sign up now do so through mobile phones

INTRODUCING

BUNDLE

TARGET GROUP Hear “What do you wanna do

with your life?”

“You have to look after

you”

“What’s your start-up

idea?”

“What do you wanna do

after graduation?” Think and Feel Adventurous, Confident,

Team-oriented Expect technology to

simply work Mobile is the technology

closest to their hearts. Social Generation Too Many Options

Say and Do

Has to study a lot not to start a real life

Spontaneously Decision-Making

Has to gain a lot of experience

Online & App Dating No commitments

See

A lot of easy ways to get music

Excessively sharing information and life through

social media Overwhelmed by media &

opportunities

•  The largest music streaming service

•  The largest mobile network in USA

•  Fast 4G service with unmatchable coverage

•  Access to over 20 million songs ad-free

•  Create, share and follow endless playlists

•  Sync music to your device for offline use

PRODUCT

Plans Calls Messages Data Verizon + Spotify Trial

Duration Cost/Month

A 600min Unlimited 2GB

1 month $ 40

B 1,000min Unlimited 4GB 3 months $45

C Unlimited Unlimited 10GB 6 months $50

•  Three packages for customers to choose from.

•  Value addition for Verizon customers &

new customers for Spotify

•  Perfect option for our target group – Millennials

PRICING

PROMOTION

PROMOTION / media plan & budget allocation

Total Budget For Media Promotion: $5,000,000

FORECAST

MAR 2013 MAY 2014 NOV 2014 JAN 2015 JAN 2016

Worldwide Users

(Free + Subsc) 24M 40M 50M 60M

WW Subscriptions 6M 10M 12.5M 15M

USA Subscriptions N/A N/A 3.35 M 4M 6.4M

FORECAST

NOV 2014 JAN 2015 JAN 2016

USA Subscriptions 3.35 M 4M 6.4M

USA Subscriptions With VERIZON-S

1.8M

TOTAL 8.2M

THANK YOU

Rebecca Teboul Julia Treppte Elena Berrone Gaston Arcuri Vikas Mu