Abstract

The case talks about Spotify, the ad-funded online music service which began operations in October 2008. Spotify followed hybrid business model that generated revenues from both advertisements and subscriptions. The short case specifies the way in which the service enabled music companies to earn revenues and reduce music piracy, and mentions the unique advertising opportunities which Spotify provided to advertisers. It also touches on the limitations of the service and the competition it faced from other online music services.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Hybrid Business model
• and New online advertising opportunities

Keywords

Spotify, online music, online advertising, subscription, iTunes, P2P, last.fm, Pandora, Universal Music Group, Sony BMG, EMI Music, Warner Music Group, music piracy