MUSIC STREAMING APPLICATION SPOTIFY: SOLVING LEGAL AND PROFITABILITY IMPASSE

Abstract

On January 2023, Daniel Ek, CEO of the music streaming company organised a delegate meeting emphasizing the need for organisational change. He mentioned that the company had made great progress in improving on the speed of the services, but that alone would not be sufficient to scale greater heights in the future. He knew the company had come a long way to develop a comprehensive platform for creators, but aspired to become the go –destination for creators. What was needed for the same improvement on tools & technology and monetize artistic work. He would need to think of   the broad changes at Spotify to achieve this.

Pedagogical Objectives

1. Understand the advantages and disadvantages of a first mover in any industry
2. Relate to the characteristics of an entrepreneur
3. Relate to the functioning of Music Industry
4. Analyze the Business Model of a Music Company with OTT platform
5. Analyze the disruption in the music industry with OTT platforms

Case Positioning and Setting

The case is suitable for bachelor’s level students and for the students of the courses of post –graduation.         Because of the contemporary nature and resourcefulness the case would appeal and be appreciated by large gamut of students whether in under graduate or post graduate course with or without management experience. However this will be enjoyable for the scholars with a flair or inclination for technology social media networks and working of platform organizations. The case can be used for courses related to strategy, role of technology in management, Managing Business Enterprises and Entrepreneurship. The case describes the journey of Spotify: A Music Streaming Application, and can be related with the advantages and disadvantages of the first mover in the industry. The company brough disruption in the industry and the way OTT platforms have changed the world we live in. As a consumer we see the success of the OTT platforms but the struggle and challenges for them are not less. The Industry has its own challenges. The case narrates the journey, the accomplishments and the challenges the Music Streaming Application, Spotify faced since inception.

Keywords:   Innovative disruption, convenience, user –engagement, music streaming.