Analysis of The Trend of Spotify

Abstract

With the change in people's music consumption patterns, music streaming media enterprises have attracted more and more attention. Spotify is one of the largest music streaming media enterprises at present, and its rapid development has been attracting attention. As the market becomes increasingly competitive, Spotify's single business model is increasingly limited. Through the combination of qualitative and quantitative research, this paper concludes that the main problems of Spotify's current business model are as follows: firstly, it cannot produce content, and acquiring music playing rights only by buying the copyright of record companies not only consumes a lot of money but also has uncertainties. Second, only relying on a single advertising and subscription fees revenue model has been unable to meet the needs of enterprise management costs. Third, as the competition among music-streaming services intensifies, Spotify must be able to provide users with music that is more satisfying to their tastes. Therefore, to solve these problems in the future, Spotify can focus on creating its own record company, upgrading its algorithm, and developing its own hardware products to enrich its business model.