There was once a time where Record Players and the Radio dominated the music industry in terms of audience. However the last few years has seen the rise of Spotify. In the digital age we live in, it is hard to see how such a small company has grown so large but it has and this is how! At first it’s strange to think that people would prefer to use it when people have music players built into their phones where they can access all the music in the world for free. yet people still download the app. I’m going to look into why people download Spotify and how Spotify has got so popular in the music and streaming world.I’d just like to start by saying that Spotify isn’t actually the most popular way of listening to music, that title belongs to YouTube. Reasoning for this would be down to the fact that YouTube is a free website and app and it’s accessible for everyone with the internet. Whereas Spotify is an app which limits the very few who don’t have access to a way of downloading it. According to Forbes,  it now has 170 million users”, now although this shows that Spotify is insanely popular, it is nowhere near the levels of YouTube which has 1.5 billion listeners.

However, where Spotify is winning, is in terms of the service provided being clear and simple. Spotify has a premium service package available on the app and it allows the subscriber to listen to music in the highest quality in multiple playlists without the advertisements that the normal consumer would have which is a lot more appealing. There are obviously drawbacks. “The standard price for Spotify premium is £10/month”. This seems like a high price to pay for a monthly subscription however when you take into account the cost of other premium services, it’s actually superb value for money. Along with the amount of songs accessible and the quality in which they can be played in means every genre has a tonne of content. As already mentioned Spotify Premium allows the customer to ignore every single advertisement which is a very big deal because majority of platforms use advertisements. Then there is the fact that people can listen to their favourite music, wherever they are in the world because of the ability to play offline and on different devices such as phones, computers, video game consoles and even the television in some cases.

The chart taken from Spotify’s Get The Data site, shows that Spotify premium is not only getting more and more popular but it is the main source of the companies revenue. Image from Spotify.

Students get Spotify Premium half price which is an absolute bargain. The reason for this is most probably down to the sales. A lot of students will want to be listening to music whilst working on their assignments and some students will just want to listen to music whilst on their way to uni. It wouldn’t make sense for Spotify to target students at the £10 price though. It isn’t a viable option because a lot of the students don’t have the money. However, making it half price is not only a bargain price for students but it is generally affordable for the many and Spotify will make a lot more money marketing it at this lower price range. For those who don’t have the financial capability to purchase Spotify premium, Spotify does offer a three month trial at a cut price of £1 for the quarter. Spotify Premium can be made cheaper though which is why a lot of the consumers purchase it, as explained by Tech Adviser. “A family package costs £14.99”. The idea of this is to allow the entire family to listen to Spotify which is self-explanatory in itself, however at £14.99, everybody in the family gets the same high quality, music in their individual playlists, without the advertisements that a standard premium subscriber would get.

From a small company that was started in 2006 and according to The Telegraph, “Spotify was worth $8 Billion” as of 2015 which shows how popular the music streaming site is. It’s had a lot of time since then to grow and it definitely has with over 100 million more users signed up since 2015. Now one of the reasons for the Spotify’s growing popularity is the way that artists are putting snippets of music videos with songs which is reminiscent of MTV, which for the last couple of decades, the most popular way to watch music videos. In an interview with Billboard the head of creator services, Troy Carter said “Spotify wants to be “what MTV was”.  Therefore in doing this, it shows the Spotify really is competitive in the sense that it is almost dominating music streaming alongside YouTube. In fact, another reason for this is the fact that YouTube even recently launched their own premium service, which shows what kind of influence Spotify has had on the music industry. Ultimately, Spotify is starting to really grab a hold of consumers in the music industry and grow in the sense that more and more people are subscribing than to any other platform right now with all of the benefits it offers for the price for premium, it seems worth it!