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Product: Spotify Category: Live Streaming

Spotify should enter the live streaming market to increase user engagement and subscriptions. Live streaming would allow artists to connect with fans and Spotify to become a one-stop destination for live music. While there are risks in entering a new market, Spotify is well-positioned due to its brand, user base, and infrastructure. It should launch gradually with marketing and high-profile events to establish itself before a full rollout.

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Keerthana Aravind
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187 views

Product: Spotify Category: Live Streaming

Spotify should enter the live streaming market to increase user engagement and subscriptions. Live streaming would allow artists to connect with fans and Spotify to become a one-stop destination for live music. While there are risks in entering a new market, Spotify is well-positioned due to its brand, user base, and infrastructure. It should launch gradually with marketing and high-profile events to establish itself before a full rollout.

Uploaded by

Keerthana Aravind
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Product: Spotify

Category: Live Streaming*

Should Spotify enter into the market of Live Streaming?

*Live-Streaming entails concert streaming, live music festival streaming, live jamming sessions by
artists, etc.

Goals

● To increase user engagement


● Acquire more subscriptions through network effect and social connections
● To be a one stop destination for all live music events, big to small.

Key Mission of Spotify

Spotify's mission is to unlock the potential of human creativity – by giving a million creative artists
the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by
it.

Why the Live-Streaming market?

For many people, attending concerts is an essential part of their social and cultural lives. In
addition to hearing live music, concert-goers are able to experience a sense of community at
concerts and become more in-tune with their lives and well-being. As a result of the pandemic,
there was a dip in offline concerts and festivals, so artists needed new methods for creating
meaningful live experiences online. Spotify's dominance in the music industry will lend itself well
to pursuing its strategy of leveraging its huge user base and creating one-stop shops for all live
music events thanks to its huge user base of music enthusiasts. Furthermore, independent artists
can also use the platform to showcase their music and reach their fans from around the world.
User Segments and Needs

1. Artists
1. Upcoming/Amateur artists and bands - will gain visibility and a platform to
promote their music to a mass audience.
2. Niche artists and bands - Compared to mainstream genres, niche genres have
fewer fans scattered across the globe. Spotify Live will allow them to reach out to
their fragmented fanbase in a way that is not possible via offline concerts that target
a specific geographic area.
3. Music Labels and Popular artists and bands - All in one place to promote their
music
2. Audience - There is no one-stop place to view all the live music events, some stream
through social media, some through YouTube. In addition to this, a lot of people don't have
access to international concerts as they're too expensive. Folks may also wish to catch up
on online sessions by upcoming artists before purchasing tickets to their offline events.

Market growth and size

1. Online Music Streaming Market $12.83 billion in 2019, and is projected to reach $24.71
billion by 2027, witnessing a CAGR of 9.8% from 2021 to 2027. We predict that a huge
chunk of the Online Music Streaming Market would also be interested in Online Live Music.
2. Spotify Now Has 158 Million Premium Subscribers and 356 Million Monthly Active Users

Competitors

YouTube Live, Facebook Live, Instagram Live


Spotify's Strengths and Capabilities

1. Spotify already offers a concert page, where you can see a list of concerts based on your
listening history, and it does a great job of selecting artists that you might enjoy. Using
third-party platforms, it also lets you access virtual events. Also, Spotify previously tried to
enter the video market, proving that the infrastructure is in place to host video content.
2. Due to its strong brand reputation and large user base, Spotify is well-positioned to
capitalize on live events.
3. Spotify has a vast network of diverse artists and bands that would be interested in live
events
4. As a major player in the industry, Spotify has strong cash reserves that can be used to
market the new product.
5. Spotify can easily capture the entire Live Music Streaming market since it does not face
any direct competition

Spotify is fully capable of building the best live music streaming platform out there. They have all
the right pieces, but they haven’t put them together to satisfy an unmet consumer need.
Risks

1. Being a new market, Spotify does not have any prior knowledge regarding the behavior and
monetization of users
2. Potential risk of low-quality streaming

Mandate

Spotify leads the music industry and there is no existing competitor in the Live Music streaming
market, so it seems like a logical progression to enter this market given that there is such a large
gap.

Launch Strategy

1. Pre-Launch
1. Marketing through the current Spotify app
2. Marketing on other social media
3. Partnerships with labels/ festivals for upcoming events
4. Test Live Stream within a small users set and track user behavior
5. Improve algorithms and develop UX for live event suggestions
6. Define success metrics
2. During Launch
1. Marketing through artists and influencers
2. Create buzz by streaming a well-known music festival or event
3. Initially Live Streams can be made available to all - both free and premium users - in
order to attract more customers
3. Post-Launch
1. Evaluate success metrics of all the stages in the user journey
2. If it's successful, strategize expansion plans
3. Rethink Premium pricing strategies according to user analytics

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