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BNA_G2_Spotify - Coggle Diagram
BNA_G2_Spotify
Revenue Streams
:one: Subscription
Premium Subscription Model
Different Subscription Tiers
Individual Plans
Family Plans
Student Plans
Features and Benefits
Ad-Free Listening
Offline Downloads
Higher Audio Quality
Revenue Impact
Primary Income Source
Revenue Stability
:four: Podcast :radio:
lower licensing fees
:three: Partnership :silhouette:
Leaving
1/3
For itself to pay for all of
its other cuts
Marketing General
Administrative
Development sales
Taxes
Research
Music nearly
2/3
Paid to
their rights holders
of the music
:two: AD-Supported
Advertising charging model
:five: Price Increase
Limited by competitors
Cannot generate sufficient revenue
Cost Structure
:three: Operational Costs
Research and Development (R&D)
Technology Development
Innovation
Sales and Marketing (S&M)
Promotion and Advertising
User Acquisition Costs
General and Administrative (G&A)
Business Operations
Administrative Staff
Office Expenses
:four: Content loyalties fees :memo:
diverse content library needs big investment
:five: Marketing and Partnerships
Pays most of its royalties towards
A big three together
Sony Music Entertainment
Warner Music Group
Universal Music Group
A
60
share of the music
publishing
industry
A
70
share of the music
recording
industry
Negotiating with is a oligopoly
:two: Licensing Fees
Music royalties
:one: Royalty Fees
The greatest portion of Spotify’s cost
Takes 70 cents out of every dollar
Provider is oligopoly industry