音樂串流廠商經營發展策略之研究-以Spotify Technology S.A.為例

Abstract

As the music industry evolves with the advancement of technology, consumers have shifted their music consumption from physical albums to digital formats of music. Music streaming has become the mainstream of the music industry and it has changed the value chain of the traditional music industry. Despite contributing a significant amount of revenue to the music industry, whether music streaming industry is able to make a profit is still questionable. This research studies the future profitability and development of the music streaming industry. The case study chose the leading company, Spotify, of the industry as the focus. Spotify is aim to go public in 2018 but its major concern is its negative net income performance. Although various reports indicate that Spotify is being valued at $13 billion, it has to prove to the investors its ability to make money after going public. The secondary data collected are being analyzed and categorized in order to ascertain the comparison is meaningful. Porter’s five forces and value chain analysis are used to evaluate the main factors for music streaming platforms to be successful. Platform-mediated network and business model canvas are used to indicate Spotify’s core competencies and provide strategic suggestion for future implementation. The findings suggest that Spotify has valuable resources such as wide user base, technology, and human resources that enable them to be the market leader. Yet, the high payout rate to right’s owners and high royalty rate are preventing Spotify to make money. Spotify needs to make a better licensing deal with the record label and continually work on technology development that cater to the consumers’ needs. Meanwhile, geographically expansion, strategic alliances with other industries, and expand the business to related areas are possible solutions for Spotify to capture more market value.