Spotify is a music listening app that has transformed the world.
Spotify was created by, 31 year old Daniel Ek, as an application to allow the user to listen to any music and create playlists without paying anything. The way Spotify makes money is through advertisements in between songs.
Originally, Spotify started out solely on computers. In 2013, things changed, Spotify launched an app to allow smart phone users to also stream music. In 2013, Spotify had 24 million active users that streamed over 4.5 billion hours of music. This completely transformed the consumers experience in the music downloading industry but has reduced the profits of artists around the world, because nobody has to buy the songs anymore.
I believe Spotify is in trouble the next several months because of the growing number of artists pulling their albums off of Spotify. For instance 2 weeks ago, Taylor Swift, pulled all of her songs from Spotify to increase her profits by having fans pay full price for the new album, 1989, which just came out. Swift made a smart move, but it could start a movement by artists around the world to remove their songs from Spotify and all other free music listening applications.
Daniel Ek, founded his first company when he was only 14 years old. He has the drive of an entrepreneur to do whatever it takes to succeed. He is currently worth $400 million dollars and is making a significant difference around the world through the evolution of streaming music.
In entrepreneurship, your age doesn’t matter, your drive for success is what will carry you farther than ever before.
I didn’t realize that Spotify originally was only used on computers. Interesting fact. It will be interesting to watch Spotify over the next few months to see if artists will drop out after Taylor Swift’s move. Spotify has been an incredible music option, and I personally love it. Hopefully it doesn’t crash and burn! Good post, Connor.
I didn’t realize that Spotify made it’s money from the advertisements in between its songs. That’s really cool! I know a lot of people that use Spotify and really enjoy it! Awesome post, Connor! 🙂
I use spotify on a regular business and have thoroughly enjoyed using it. I will be following this story with Taylor Swift closely because if all of the artists are going elsewhere then consequently so will I.
I love using spotify but I never considered how much the artist makes from it. Daniel Ek is an innovator because he put a spin on the online music industry. I used to always use Pandora for music but now I’ve completely switched over. I also was reading an article about the Black Keys and how they did not add their two newest albums on Spotify because they feel as though Ek is making money from the artists unfairly and that they do not get a fair cut of the profits made from their music.
Even though I am not a big Spotify user, it was cool to learn how Spotify makes its money. Connor, I absolutely agree with your last statement; “In entrepreneurship, your age doesn’t matter, your drive for success is what will carry you farther than ever before.” I believe that is something for us all to remember, as we continue through college and then head out into the world to pursue our dreams.
I definitely agree with your point that Spotify needs to be careful not to lose any more artists like Taylor Swift. I love listening to Spotify for free and would be greatly upset if my favorite artists started to pull out. I think we should be pretty safe, however, because artists don’t want their music to be pirated. I think the solution is for artists to just wait a couple months before releasing their new albums on Spotify .