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The internet has popularized the freemium model like no other channel, but building a successful business on this model can be quite a challenge.
One company that has succeeded: Spotify, the Swedish company that has become Europe's most popular music streaming service.
Spotify has resources, a huge (and growing) entrenched audience and some great opportunities to create long lasting, effective brand positioning and positive sentiment, making it a great marketing platform.
Here’s a few quick tips to get your marketing push started on the music streaming service.
Popular European music streaming startup Spotify has been able to survive and thrive in a tough market that has seen its fair share of startup casualties. In an effort to maintain its growth, it has announced the largest upgrade since it first launched in 2008.
The goal: turn Spotify into a "total music management platform". The means: a hefty dose of social features.
Swedish startup Spotify has taken Europe by storm. The ad-supported music streaming service, which also offers an ad-free and mobile-enabled paid offering, has more than 6m registered users across Europe, with more than 2.5m in the UK. Expansion into the US is planned for 2010.
Spotify's popularity has attracted investment from major record labels and recent reports suggest that Spotify may be Sweden's biggest contribution to the music business since Abba.
Alternatively, there's the option of paying a small monthly fee to sign up to the premium version in order to remove the ads and access the mobile version.
All in all it's a fine playground for anybody who loves music. I caught up with Spotify CEO Daniel Ek, who talks about the company's progress and plans...
Spotify, the joyous music app, has launched an updated download service, seemingly in a bid to generate additional revenue.
The move comes a month or so after Spotify enabled offline access for both the deskptop and iPhone app. It makes it much easier to purchase songs, by promoting the download service via highly visible icons. Previously you had to jump through hoops if you wanted to buy music via Spotify.
Songs cost 79p and full albums are available for £7.99, though not every song or album can currently be purchased. Downloads can be added to Spotify playlists in the usual way.
We all know that customer reviews can boost trust and credibility, and as such they can drive serious improvements to conversion rates and search rankings.
But Houston, we have a problem. The problem with customer reviews is this: the lack of proper customers.
The launch of the Spotify iPhone app demonstrates this issue quite clearly. Non-paying customers are giving one-star ratings to the app on the basis that they are non-paying customers!
The eagerly awaited Spotify app is now available for download for UK and European mobile users to download, for both Android and iPhone users.
The app allows you to sync playlists, stream music to your phone through a wi-fi connection, and best of all, to access playlists when you are offline.
I've been trying the new Spotify iPhone app out...
Could Swedish-based Spotify be making the case for ad supported music online? Perhaps.
While other digital music startups struggle with copyright fees and broadband charges, Spotify is making friends with major music labels — and helping them bring in revenue.
The head of Universal Sweden told a Swedish publication this month that Spotify now makes more money for the label there than iTunes. If those numbers are accurate — and can expand to reach other parts of the world — they could represent the silver lining the music industry's been looking for. And go a long way toward explaining how Spotify sweet talked the labels into giving the company access to stream such extensive catalogs online for free.
Last night TechCrunch Europe hosted their inaugural Europas awards, with a list highly impressive nominees and an audience of digital royalty - both start-up and established - including the Traveling Geeks who had been at Econsultancy’s roundtable event only hours before. So, what were the categories and who were the winners?
Less than 6 months after launching, online music streaming upstart Spotify has reached an important milestone: 1m users. Approximately 250,000 of those users are located in the UK.
And Spotify is making progress on the business side too: it has signed up some big ad agencies who are trying out its new ad targeting platform.
Swedish startup Spotify launched its online music streaming service in public beta a few months ago, looking to compete with established music sites like Last.fm.
Offering either subscription or ad supported version of its service, Spotify offers the artist and related tracks radio that is a feature of Last.fm, but has also provided a good range of tracks that can be listened to on-demand.