Intro
I have a confession. In middle school my empty pockets and love of music led me to some shady websites. These file sharing platforms offered me the ability to download songs for free and I wasn’t the only person opting for this loophole - pirating music has been a common practice for several decades, beginning with the rise of platforms like Napster. Much to the dismay of record labels who lost millions from theft, it was unclear if the industry would ever recover, only for a Swedish tech company to not only change the trajectory for labels, but restructure the entire industry.
Background
Since the mid 20th century, albums were the main method of music consumption. The sale of these collections made up most of the revenue generated by the music industry. Though, this formula was disrupted by the ease and growing popularity of pirating music on the internet, leaving companies in disarray as they were failing to compete with these free platforms.
In comes Spotify offering an alternative: Get access to a music library of over 70 million songs to stream whenever you want for only ten bucks a month. At first, when Spotify launched in America, the service was met with skepticism as streaming accounted for only 4% of the recording industry’s annual global revenue [1]. However, Spotify has continued to defy these low expectations and in 2020, streaming has grown to 62% of industry revenue [1].
Transforming streaming into an experience
Spotify’s area of excellence is in doing the heavy lifting of curating for you. Their tactics allow users to spend less time looking for songs and more time enjoying music. What makes Spotify’s playlists different from those of other streaming platforms is their willingness to go beyond traditional genre grouping. Playlists like Fit Check and Text Me Back are examples of how the medium of playlist curation has evolved. This becomes what can only be described as a vibe-centered approach to music curation – discovering songs that articulate preferences users never knew they had.
These niche mixes have solidified Spotify's place as a formidable tastemaker of this generation. They have earned this title through a masterful mix of dedicated human-led teams and machine learning algorithms. The more you use Spotify, the better it gets at targeting playlists for your specific taste. Even when users venture out to make their own playlists, Spotify still recommends niche additions that make the experience even better, keeping the user tied to the platform.
Another personalized touch is the yearly Spotify Wrapped, which sums up a user’s highlights on what genres and artists they listened to over the year. It has become a cultural phenomenon as these visually appealing analytics are shared all over social media. These creative features allow Spotify to remain competitive, even as tech conglomerates like Apple and Amazon enter the streaming space.
Leveling the playing field
Music creation is no longer confined to the four walls of a recording studio. It is now easier than ever before to produce songs and this ease has allowed more people to enter the music landscape [2]. Spotify has become a kingmaker in this realm, turning unknown artists into stars by placing their work on playlists. These placements are of course a mutually beneficial relationship, since, if Spotify wants to continue being a home to fresh music, it needs a lot of new content. However, some see this relationship as parasitic, calling into question whether both sides of this partnership equally benefit from streaming revenue.
Though Spotify has made strides to mend any frustrations. Initiatives like “Loud & Clear” Transparency, is a website that offers information on how streams on Spotify are determined and paid out [3]. Spotify has also started implementing more tools for new artists including master classes, deep analytics reports, and a talent incubation program.
Interface suggestions
When a user opens the Spotify app, right away, it is made clear that personalisation is the main priority for the platform. Users are welcomed on the homepage by what they’ve recently played. Then, as you descend down the page, you can explore what the algorithm has served you including new playlists, artists and podcasts. The simple black background lets the covers of the various choices shine.
Currently, Spotify profile pages are a bit empty, with the page only showing a user’s profile photo and library. This could be purposeful, as it is likely easier to get users listening to new music if they stay on the homepage full of curated suggestions, in turn allowing the algorithm to better fine tune its knowledge on a user's preferences. However, I feel the profile page has room to be spiced up. Some suggestions include allowing users to also place a header picture behind their profile photo and allowing them to list out the merchandise they have purchased from artists on the platform, inspiring others to show off their own.
Conclusion
In a world full of content vying for our ears, Spotify proves that personalization trumps piracy and that this streaming juggernaut isn’t going anywhere. It has continued to grow in revenue and users every quarter this year (2022) with a total active user base of 381 million globally. Daniel Ek, the CEO of Spotify, has some bold ambitions for the company’s path forward as he hopes to make Spotify a hub for the entire audio industry. I’m definitely excited to see where else they take this product.
References
[1]. Bertoni, S. (2021, November 30). Spotify has plans to move beyond music and become the Instagram and tiktok of audio. Forbes. Retrieved April 11, 2022, from https://www.forbes.com/sites/stevenbertoni/2021/11/29/spotify-has-plans-to-move-beyond-music-and-become-the-instagram-and-tiktokofaudio/?sh=1de80a7f1497
[2]. Sisario, B. (2018, September 6). A new Spotify initiative makes the Big Record Labels nervous. The New York Times. Retrieved April 11, 2022, from https://www.nytimes.com/2018/09/06/business/media/spotify-music-industry-record-labels.html
[3]. Yoo, N., & Monroe, J. (2021, March 18). Spotify launches "Loud & clear" transparency initiative. Pitchfork. Retrieved April 11, 2022, from https://pitchfork.com/news/spotify-launches-loud-and-clear-transparency-initiative/
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