Feb 27, 2024
Few companies are worthy of being called a disruptor but Spotify is one of them. To disrupt an industry means to deliver on consumer desires with a business model that displaces what’s there already, creating an enviable competitive advantage.
At a time when people were listening to more music than ever, but record labels were struggling financially, Spotify decided to lean into those consumer trends rather than counteract them.
With people using music piracy services to access content, Spotify came onto the market to offer a freemium, all-you-can-eat (or, listen) model with mobile access, personalized playlists, and music downloads.
Today, Spotify has over 547 million users, including over 226 million paid subscribers, and for many, the brand name Spotify is synonymous with music streaming. Always embracing the latest technology, it has a new AI-powered DJ in beta testing and a pilot AI voice translation for podcasts. But competitors continue to snap at their heels including Amazon, Apple, Alphabet, and YouTube.
However, it’s not only the business model that sets them apart, Spotify uses clever digital marketing to attract and retain customers and keep the brand front of mind. So what digital tactics do they use to stay on top?
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