Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299750 
Year of Publication: 
2022
Series/Report no.: 
ESCP Working Paper No. 71
Publisher: 
ESCP Europe Wirtschaftshochschule Berlin, Berlin
Abstract: 
During the last few decades, the internet and digital technology have fundamentally changed the global music industry. As a consequence, new companies and novel business models have emerged. Spotify, one of the new players in the music industry, has expanded its business activities and grown to become the leading streaming company worldwide. Today, Spotify offers a wide variety of audio products, such as podcasts and audiobooks, to subscribers, as well as significant service solutions for artists and music producers alike. This case study describes the development of the music industry before the advent of Spotify. After presenting Spotify's origins and after discussing Spotify's market entry into the most important music market in the world, namely, the US, the case study focuses on the company's growth. We show that acquisitions of other companies enabled Spotify to develop its services further, as well as to diversify its product portfolio. We also shed light on Spotify's internationalization as another important driver of firm growth. Over time, Spotify's relationship with major labels has changed, and this case study reveals how Spotify has gained power while getting more independent from the major labels.
Subjects: 
Acquisitions
Case Study
Diversification
Internationalization
Digital Music
Firm Growth
Internet
Music Label
Market Entry
Music Industry
Platform
Podcast
Product Development
Spotify
Streaming
JEL: 
A20
A23
L13
L21
L25
L82
M10
M13
M16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nd Logo
Document Type: 
Working Paper

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