July 25, 2021

Spotify celebrates 10 years and challenges the newspapers disappearance predictions | Technology

Spotify celebrates 10 years and challenges the newspapers disappearance predictions | Technology


Many of the companies and technological tools, of those that give us the feeling that they have been in our mobiles all their lives, begin to fulfill decades. Precisely this year we have attended the tenth anniversary of the Chrome browser, the Android operating system, both of Google, the Apple App Store or even the first Facebook in Spanish. To these it is added that this October 7 Spotify celebrates 10 years.

Although dozens of voices advocate the fall of Spotify every so often, the truth is that the platform of streaming that revolutionized online music presumes having a lot of life in the digital ecosystem, something that has been demonstrated through its constant evolution. Not surprisingly, it has 157 million active users, presence in 65 countries and more than 71 million Premium customers, according to company data from December 2017. This confidence in their business has also led them to go public in April. in a memorable day where their shares opened with 26% over the reference price established on Wall Street and marked the maximum of the session.

First steps

To begin with, it must be said that the project was created in 2006, but the negotiations with the record companies for the rights of the songs delayed the start-up of the company by two years. The idea came from the precocious entrepreneur of Swedish origin, Daniel Ek, a passionate about computer science and music, who at only 14 years old had already founded his own company of creation and design of web pages and with 16 he was already revolutionizing digital marketing with your company Advertigo. The other part of Spotify is, Martin Lorentzon, founder of Tradedoubler, a company that bought Advertigo from Daniel Ek in 2006, precisely at this moment was the germ of the platform of streaming.

Apparently the origin of the name is nothing more than a misunderstanding between Ek and Lorentzon in full storm of ideas to give entity to your project. Someone understood "Spotify" when they said something else and that's how it stayed.

One of the disruptive keys of this company is that it managed to give visibility to groups of all kinds, which did not have too many possibilities outside the commercial circuits, with which it also shared part of the benefits.

Native origin in PC

In 2008 it was still not thought about consuming music in streaming, the connections did not yet provide enough broadband, so the start of Spotify is necessarily linked to the personal computer or PC. Interestingly one of the first signings of the company was Ludvig Strigeus, creator of uTorrent, the program to share files using few computer resources, later acquired by BitTorrent and widely used to distribute content illegally, especially movies and music.

The first Spotify users could enjoy millions of songs without having to download them to the hard drive, for free, with a model freemium, just interrupted by some announcements between songs. Of course, an invitation was required to register and was only available in Sweden, Finland, Norway, France, the United Kingdom and Spain.

Arrival to the mobile

In 2009 the company, which until then had doubts about whether its business model would be profitable, made a leap towards smartphones creating your own application. This step gave way to its Premium offer, where the user, for a relatively affordable price, could access all his music without being connected to the Internet and without having to endure advertising breaks of any kind.

Daniel Ek, CEO of Spotify.
Daniel Ek, CEO of Spotify.

The possibility of carrying music in your pocket, made many of the first users go to the Premium mode, although the fact of being able to continue accessing a full and free consumption from the PC, caused many others to reject the payment model . Spotify's offensive was, in addition to an awareness campaign to support the music industry, limit the time to 20 hours per month for free users.

The time to do the Americas

The ironclad protectionist fight of the American record companies did not allow to disembark to Spotify in its territory until 2011. Also it did not make it easy Apple so that this strong competition of iTunes was implanted in the country. Of course, the distrust of majors Musical was great, especially because all that reminded them of Napster, a platform for exchanging music files between users whom the industry considered piracy and managed to get out of the way.

However Spotify to prove that it came with an innovative project, announced at the time Spotify Platform, opening its API for developers and thus adding to the current prevailing on the Internet of the use of open platforms (Open Platform), encouraged by Google, with which they achieved a huge valuation by users. In this platform they began to introduce applications of third and channels sponsored with musical means, one of the most announced was the one that was created with the magazine Rolling Stone.

User experience

The truth is that Spotify's proposals have not stopped growing in these ten years, and although it has had to rectify in some occasions the orientation of its business model, such as the withdrawal in 2014 of the limit of 20 monthly hours in the free access (although they still refuse to modify random reproduction in the mobile), they have always managed to give the right twist to remain one of the preferred options of the crowded panorama of the streaming musical.

Your most recent bets have gone by adding to the platform merchandising of artists, to collaborate with brands, such as becoming the official music thread for Starbucks cafes or to be an extra complement to a car model, like the SEAT Ibiza Spotify of 2011. And it has even managed to land and converge with social networks such as Facebook and Tiwtter, with whom he signs agreements in 2016 so that their users can share Spotify music from their own profiles.

Soon came the personalization of the service, where a certain algorithm creates particular lists based on the musical tastes of each user, the first was called "Discover Weekly" (Discoveries of the week), but there are others that recommend topics, for example, based on the musical memories of the summer, or mixes that intuit that could interest us like the daily list Dayli Mix.

One of the latest initiatives of Spotify proposes to sign direct licensing agreements with some independent artists so that they can continuously enter the music platform and have a closer relationship with the company. This allows them to stay out of the big record companies. Of course the industry considers this a potential threat that could lead to an absolute transformation of the business, especially if we take into account that renowned artists such as Taylor Swift, an artist who claims to be the owner of her work, sees with good eyes that the artists also participate in the distribution channels and Daniel Ek may have the key to the future of all this.

We do not know the number of birthday greeting songs that we can find on Spotify, surely many, but considering their trajectory, they deserve a good part of them

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