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Spotify

How Spotify built the world's biggest music streaming platform on a freemium model.

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All 9 blocks

Key Partners

  • Record labels and rights holders
  • Podcast creators
  • Device manufacturers

Key Activities

  • Music licensing
  • Recommendation algorithm
  • Podcast and content acquisition

Key Resources

  • Music catalogue (100M+ tracks)
  • Recommendation engine
  • User data

Value Propositions

  • All music in one place
  • Personalised discovery
  • Offline listening

Customer Relationships

  • Personalised playlists (Discover Weekly)
  • Family and student plans
  • Free tier as funnel

Channels

  • iOS and Android apps
  • Web player
  • Smart speakers and cars

Customer Segments

  • Casual listeners (free tier)
  • Music enthusiasts (Premium)
  • Advertisers

Cost Structure

  • Royalties (largest cost)
  • Infrastructure
  • R&D and content acquisition

Revenue Streams

  • Premium subscriptions
  • Advertising (free tier)

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Spotify | Business Model Canvas Template | mybmctool