Multinational Startup Spotify Ab Company – 3135 Words | Bartleby

Introduction
Headquartered in London and Stockholm, Spotify Ltd. is based upon the Swedish startup Spotify AB, founded in 2006 by two entrepreneurs Daniel Ek and Martin Lorentzon and launched in 2008.
In the digital music industry, the streaming market, which represents 10% of the sector, has grown by 51.3% in 2013 while revenues from the download market (iTunes, Amazon) has fallen by 2.1%. Spotify perfectly illustrates this superior growth as the leader in terms of innovation in this market. Considered to be one of the 10 most innovative companies in the U.K. in 2014 by Fast Company , Spotify with almost 50 million active users and 12.5 million paying subscribers, is considered to be worth at around 4 billion dollars and often rumoured

…show more content…

The Marketing Environment
A. The Macroenvironment: PEST Analysis
We shall see how Spotify integrates this broader set of forces in its strategy.
Political factors:
“We believed that if we could build a service which was better than piracy, then we could convince people to stop illegal file-sharing, and start consuming music legally again” (Ek, 2013). It tries to attract customers who previously relied on illegal options for their music needs. Digital piracy is the single most important factor restraining development of the music business. Governments were involved to fight against it and established laws such as Digital Economy Act in the U.K. The turnaround dates back to 2009 when these anti-piracy laws combined with The Pirate Bay trial inclined customers to try the new Spotify platform. It has successfully helped curb the illegal downloading of music since it does not allow you to download the track. If you want to own the track, you will be redirected to a legal vendor. Therefore Spotify claims to have reduced the number of people who pirated music by 25% between 2009 and 2011.
As such the streaming industry helps governments to combat piracy but in the medium; to long term some political forces could play against this industry: pressure from governments to ensure that the laws are created to protect