Business Model: Spotify Case Study

The growth of streaming and the development of technology has an unambiguously positive effect on the music industry: consumers now have constant access to the music of any artist and no longer share music illegally. There is a place for streaming in the future, but keep in mind that artists also give concerts, write music and songs for the gaming and film industries. Streaming may be one of the most popular channels for accessing music, but it is far from the only one.

Spotify’s business model has evolved and is now a reasonably fair model for paying artists. On the other hand, the relationships between artists and labels are often documented in favor of the labels, but this is not the fault of the app creators. Without a doubt, one of the most famous music listening platforms gives artists more reputational popularity than money. Consumers can listen to music legally for a small fee, but the Taylor Swift case casts doubt on consumer gains: Why pay if one’s favorite famous artists are not featured on the platform. Advertisers also benefit from this, especially if the promotional content is related to music, concerts, and other arts.

The lack of differentiation by country creates equal conditions for all listeners, excluding possible political overtones in the artist’s behavior. Access to music in different countries can be restricted in different ways, and therefore artists often release separate versions of albums with bonus tracks for Japan (Vonderau, 2019). Differentiation by country can become a breeding ground for conflict between labels, artists, and the platform due to special conditions for some artists that are not available to others. Full equality achieved in relationships is essential for the business model and the company’s social responsibility vision.

Taylor Swift and Big Machine did the right thing by drawing attention to the problem. As a result, the singer’s songs are now presented on various streaming services, including Spotify. Spotify, in turn, must maintain a neutral stance in public by negotiating to resolve issues with artists in the presence of their label representatives. Significant changes to the business model should not be allowed due to possible problems with artist units; the reasons should be based on improving the platform’s earnings, artist and label, or user experience.


Vonderau, P. (2019). The Spotify effect: Digital distribution and financial growth. Television & New Media, 20(1), 3-19. Web.

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