Spotify is the coolest thing to hit the music scene since the piano was invented in the early 1700′s. Not only that, but it is completely legal, which means that you don’t have to take part in music piracy to download your favorite music – and on top of that – you don’t have to download anything! It is completely “stream-able” and all you have to do to listen to your music is search and click the song, and it instantly starts playing!
All that being said, many people are still unsure whether or not people are going to stick around and pay the $9.99 a month to use the system. Skeptics wonder how many people would pay $10 a month just so that they could use music, when there are so many other revenues to obtain free music out there.
To answer that question, I will first and fore mostly say that if you are going to use Spotify’s free version, then you will quickly see why it is the best option out there to listen to free music there is.
Like Spotify’s CEO said, they knew that the music platform had to be free so that they could steer people away from pirating music. What Spotify does, is claims that monetize an audience that would otherwise be pirating music. What does this do? What they do is they pay out large sums of money to the people at the top of the food chain in the business industry so that they have the rights to distribute the music.
This means that there is little money left over for the musicians to cash up on which means that it will become harder and harder for the musicians to make a living off of their work…
Now just how that will affect the music industry I am completely unsure of. I have a theory that if musicians are getting paid less because of how Spotify works, then it might make it so only the people that truly love to produce high quality music will stay in the business, but that is a whole other story.
Spotify’s business model might work out because it is like offering people a free trial, and offering free trials is one of the best ways to pick up new customers out there. Netflix does it, SEOmoz does, along with thousands upon thousands of other companies out there.
The only thing is that nobody really thinks of it that way. Spotify can either go one of two different ways:
1) Everyone that uses the free version builds up mega playlists. These people are total music lovers, and are ecstatic about creating their own music profile that they can then share with their friends. After the “trial” period is over, they decide to pay the $10 a month so that they do not lose the thousands of songs they have built up over a long period of time. As Sean Parker calls it, this is the “Gotchya by balls” business model.
2) Spotify is just way too much of a luxury. People really don’t need that much access to so many songs out there, and if it comes down to the point of choosing millions of songs to choose from for $10 a month, people may just opt out because there are so many other free music venues out there.
Only time will tell whether or not Spotify’s business model will work out. Not many like them have been able to put it together and work out in the past, but then again, not many companies were structured or anything like what Spotify is like.
Spotify also has one other major huge factor going for it – its social side. Spotify’s integration with Facebook is only going to get better and better with each and every day that passes. It is a very cool option to see what your friends have been listening to and to discover new music through them. This greatly enhances the value of Spotify, because the people of today’s world virtually live on Facebook. And when you are able to have as good as integration as Spotify does with the biggest social network in the world, then you are obviously giving your business model a very good chance to work out.
Author Byline: This article was written by Philip Russell of www.inetzeal.com. This website is the front of an SEO company that provides an unbeatable SEO services. In his spare time, Philip is learning to become a computer programmer and also enjoys writing articles about SEO, Internet marketing, and all other things of that nature.