Video |
Spotify.
How it all started.
From nothing to nearly 190 million paying customers.
Solving problems for the consumer and the company.
Why do people subscribe for 10 EUR per month when they can use most of the important services for free?
In SAAS [sales as a software] pricing, many companies are faced with the decision of offering a free and watered-down version of the software.
In Spotify’s case, they essentially offered the full product, but with integrated advertising. This is something that most people really dislike, but they still had access.
As I have stated before, many start-up companies are about solving problems for customers. This, for me, is what makes Spotify unique because they solved problems of 3 separate parties.
Record labels were having issues with losing revenue due to illegally streamed music. Companies such as Napster and Limewire were examples.
Artists were losing out for the same reason, but also on CD sales.
Many consumers would rather listen to their favourite music online, than buy a CD.
Spotify found a way to generate revenue from something that was, until that time, mostly downloaded illegally.
Ultimately, consumers could listen to their favourite music online, and record labels and artists were now having less and less music stolen, thus meaning they were seeing a massively increasing revenue stream.
Why do I recommend this video?
As usual, because it is interesting!
Secondly, because we are becoming more and more dependent on technology as a society. This is why most giant companies are tech-based.
This video provides fantastic vocabulary on the SAAS and tech industry.
Click on the play button below!
Oliver J. Baxter
Englischlehrer / Englischkurse in Liechtenstein.
