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SMMCG8[TP2]_Spotify, Revenue (in € millions) Premium Ad-Supported,…

- - - - Introduction
        
        Basic Unit of development
        
        similar to a scrum team
        
        feel like a small start-up business
      - Mission
        
        design, develop, test, and release to production
        
        long-term mission
        
        building and improving the Android client
        
        creating the Spotify radio experience
        
        scaling the backend systems
        
        providing payment solutions
    - - Introduction
        
        Made up by multiple Squads that work on a related feature area
        
        an incubator for the squad mini-startups
      - Mission
        
        providing the best possible habitat for the squads
        
        gatherings an informal get-together
        
        live demos of working software
        
        cool hack-day projects
    - - Introduction
        
        kind of a glue that keeps the company together
        
        gives some economies of scale
      - Mission
        
        regularly to discuss their area of expertise and their specific challenges
        
        testing chapter
        
        web developer chapter or the backend chapter
        
        responsible for developing people, setting salaries
    - - Introduction
        
        a group of people that share knowledge, tools, code, and practices
        
        any squad, chapter, or tribe can be part of a guild
      - Mission
        
        solving problems and keeping teams aligned and focused
        
        the benefits of having guild are that anybody, who is interested can join any guild
        
        Ex. Who interested in web development can join in that guild
- - - - Spotify is the main driver
        
        One of the biggest drivers of revenue growth
        
        The leader in streaming music
    - - Actively invest to supplement the music library provided by the platform
        
        Improve rich experience and user engagement
  - - - Clubhouse launch
        
        Launched HIFI in response to market changes
      - Podcast market is fiercely competitive
        
        Adjust the type of resources
        
        Add paid subscription function
        
        Exclusive membership-only content
        
        Acquisition
        
        The Ringer
        
        Expand content service and customer base
        
        Megaphone
        
        Increase podcast profit
- - - - A good letter
        
        a good email subject
        
        personalization
        
        acting
        
        appealing
        
        customers’ fear of missing out
      - Spotify style of email
        
        The message is clear and simple
        
        Bold color
        
        The design of CTA (call to action)
        
        use the color opposite to the background
        
        Using GIF in the mail
        
        feel refreshing
        
        easily understand
      - playlist recommendation
        
        Touch people’s heart
        
        use big data
        
        accurate their recommendation
        
        raise the brand loyalty of user
        
        send personal email
    - - licensing agreements
        
        sell product for an affordable price
        
        accessible
      - all major music labels, artists
      - equal quality across the board
    - - strengthens market positioning
      - optimizes value chain
  - - - Balancing autonomy and accountability
        
        establish transparent boundary conditions and clear expectations
      - Derived company value and mission
    - - Streaming Ad Insertion
      - Ad Studio
      - Megaphone
        
        ensuring this industry reaches its full potential
- - - - Yes
        No
        No
        No
        Competitive Parity or Equality
        
        Yes
        Yes
        No
        No
        Temporary Competitive Advantage
        
        Yes
        Yes
        Yes
        Yes
        Sustained Competitive Advantage
        
        User Data
        
        AI / Talented Developers
        
        Music Library
      - Key Resources
  - - - Highly trained and skilled
        
        More productive output
        
        Not the case with employees in other firms
        
        V+R
        
        Temporary Competitive Advantage
      - Better compensation and work environment
        
        Loyal
    - - 2019 : Spotify has 217M users that log over 100 billion data points per day
      - Proprietary algorithms
        
        Sort and prioritize the content
        
        create a superior, personalized user experience
        
        V+R+I+N
        
        Sustained Competitive Advantage
      - Data analytics systems
    - - Apple, Amazon, YouTube now all have ~70 million tracks
      - Spotify offers over 70 million tracks and bespoke playlists made for users weekly
        
        Develop
        
        Expand further
        
        V
        
        Grow
        
        Competitive Parity or Equality
- - - - increased €140 million, or 23%,in2020
        
        podcast costs
        
        delivery costs
        
        royalty costs
    - - increased €222 million, or 36%,in2020
        
        personnel-related costs
        
        increased social costs(share price movements)
        
        increased salaries, share-based compensation, and other employee benefits(employee increased)
        
        information technology costs(€20 million)
        
        cloud computing services
        
        additional software license fees
        
        consultants and external contractors
    - - increased €683 million, or 15%,in2020
        
        increase in new Premium Subscribers resulting in higher royalty costs
        
        payment transaction fee
        
        streaming delivery costs
    - - increased €203 million, or 25%,in2020
        
        increased social costs(share price movements)
        
        increase in the number of Premium Subscribers on free trials
        
        increase in advertising expense
        
        increase in personnel related costs
  - - - 91% of Spotify total revenue
        
        Duo Plan
        
        standard plan
        
        Student Plan
        
        Family Plan
      - no commercial breaks
    - - 9% of Spotify total revenue
        
        the number of audio and video ads impressions
        
        2019-2020, the growth was primarily in revenue from podcast and self-serve channel
      - no subscription fees
  - - - User Data
        
        advanced data analytics systems and proprietary algorithms
        
        predict user preferences and selecting content tailored to users’ individual tastes
        
        online platform and external marketing efforts
        
        Ad-Supported Users :arrow_right: Premium Subscribers
    - - Music Library
        
        music publishers
        
        other rights holders
        
        record companies
    - - AI / Talented Developers
        
        Natural language processing
        
        Original audio file model
        
        Collaborative filtering model
- - - - CR: freemium service&paid subscription
        
        relevance
        
        Increases in royalty rates or changes to other terms of these licenses may materially impact our business, operating results, and financial condition
        
        calculate and make payments based on complex royalty structures
        
        VP
        
        for subscribers
        
        music is legal
        
        1 more item...
        
        for advertisers
        
        cost is cheap
        
        1 more item...
        
        provide advertising inventory at discounted rates or on other favorable terms
      - CH: APP&website
  - - - CR: freemium service
      - CH: APP&website
        
        relevance
        
        deploy effective solutions to monetize the mobile device usage
        
        VP: for advertisers
        
        cost is cheap
        
        RS: Ad-Supported represents 9% of total revenue
        
        easy to reach new consumers
        
        publishers and advertisers use data to target advertising toward specific groups of users
  - - - CR: paid subscription
        
        relevance
        
        fulfill premium subscribers expectations
        
        high quality of this platform
        
        VP: for subscribers
        
        instant access to music through streaming service
        
        1 more item...
        
        sometimes may contain undetected software bugs or vulnerabilities
        
        loss of customer base
      - CH: APP&website
  - - - CR: freemium service&paid subscription
        
        relevance
        
        Fan based communities that allow music lovers, who share their tastes and interests in music
        
        VP: for subscribers
        
        social sharing
      - CH: APP&website