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    Spotify: Face the Music (Update 2016) - Teaching Note: Facing Increased Competition

    Sastre Boquet, Isaac ; Vroom, Govert

    • Reference: SMT-112-E

    • Year: 2016

    • Number of pages: 12

    • Geographic Setting: Global, Suecia

    • Publication Date: Feb 17, 2017

    • Source: IESE (España)

    • Type of Document: Teaching Note

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    Description

    The case describes the business model of the music streaming company Spotify, setting it against the backdrop of a music industry that had faced steep revenue declines since the advent of digital formats in the late 1990s and the rise of illegal file sharing. The case also presents the competition Spotify faces from the likes of Pandora, Google and Apple and asks whether Spotify has a viable long-term business model despite its explosive user and revenue growth as of 2016. The case also considers whether Spotify's model could eventually return the industry to a path of global growth, as has occurred in some of the markets the company has entered.

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    Keywords

    Business Model Competition Competitive advantage Competitive Strategy Digital goods digital media Entertainment industry Music industry value chain