We conducted secondary research at initial stage to mainly gain background information on music streaming industry. During our secondary research, we referred to more than 20 articles from reliable sources like database from GGU and articles from websites like WSJ and New York Times. After completing secondary research we met as a group and discussed our idea and findings. During reading article we found some interesting facts about music streaming services it also answered some of our questions like who were major companies is industry?, how was these companies making profits? What were the trends and some more? This secondary research also helped us develop our research questions and hypotheses for our research. Research Question
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Since users do not need to pay for the services, it is easier for them to access that kind of services. This freemium with limited access type has more chance to gain customer satisfaction because it allows customers to use the service without paying. In fact, Bekkelund continued to claim that customer satisfaction is one of the essential keys to success in Freemium model. It is clear if managers want to be success in a long run, they need to make customer happy with the services. Bekkelund went on to state that most satisfied customers tend to recommend the service to people that they know which is one of the significant keys to success in freemium model. Word of mouth plays important role plays an important role within this type of service. This is also useful way of getting to know anything especially when someone is new to any kind of service. According to Wasserman (2013), 70% customers are confident to trust brand that is recommended by their friends and family while only 10% of customers trust advertising. Thus, we …show more content…
In December 2016, Apple Music hited 20 million paid subscribers within 18 months. Even though Spotify has 50 million paid subscribers, it took 8 years to hit this figure after they first launched in October 2008 (Sanchez, 2017). In fact, Seitz (2017a) cited that Apple Music offers a three-month free trial to get users hooked. Sanchez has the same point with Seitz that one reason for Apple Music to gain more subscribers comes from a three-month free trial. However, Digital trends (2017) indicated that a majority of Spotify users listen for free, and they will be able to experience Spotify’s service as long as they want. That is better than a three month free trial that Apple offers. So, we
For centuries, the value of horses was known to farming and working communities, but it was not until very recently in history that people began to see the value of a horse for the disabled and mentally handicapped. Hippotherapy, as defined by Barbara Smith, is “the use of the horse as a medical treatment strategy and not as a method to teach riding.” Dozens of studies show the effectiveness or non-effectiveness of this specialized therapy for certain disorders. The horse provides a stepping stone to well-being for people with debilitating illnesses that otherwise could not achieve optimal wellness through conventional therapies.
Spotify is an on-demand music streaming service that provides a two tiered service to its users. The free service allows users to listen to any song on demand within the application’s music catalogue, but with the presence of ads. The premium service, however, is completely ad free. Launched in 2008 in Sweden, Spotify has grown and currently has over 24 million active users. (Sisario, B) As a result of several deals struck with EMI, Sony, Universal, and Warner Music Group, Spotify currently holds a music catalogue of roughly 20 million songs.
Prendergast, G., Ko, D., & Siu Yin V., Y. (2010). Online word of mouth and consumer purchase intentions. International Journal Of Advertising, 29(5), 687-708
Consumers rely on their smartphones and laptops to listen to music on-demand. Although there are many music streaming companies, Spotify was one of the first to let consumers access millions of artist without buying individuals songs or albums. With Spotify, consumers pay for a premium subscription that allows access to every artist, album, and song within their library of
Without customers continuing to purchase products from any company, there will not be any profit. For consumer needs, good communication habits are required so that his or her satisfaction is always priority. By consistently keeping an open means of communication with purchasers, there will be continued knowledge of how to keep them satisfied. Word of mouth can make or break a company (Richins, 2009). When consumers receive negative feedback about a product by someone they trust in their personal life, they are very likely to avoid purchasing that product.
Blazevic, V., Hammedi, W., Garnefeld, I., Rust, R.T., Keiningham, T., Andreassen, T. W., Donthu, N., and Carl, W. (2013) 'Beyond traditional word-of-mouth', Journal of Service Management , 24(3 ), pp. 294-313 [Online]. Available at: www.emeraldinsight.com/1757-5818.htm (Accessed: 10 May 2014).
Netflix’s service is more profitable because of their ability to gain revenue from subscribers is structured more efficiently than Spotify’s. A music streaming service like Spotify has to pay in advance for the music that might be streamed by subscribers, even if certain artists never get streamed. Musicians themselves are reluctant about, if not occasionally hostile towards Spotify. Musicians rarely want to help Spotify in a way that will increase Spotify's profit margins because their model is already set up to make artists feel like they are being left shorthanded.
The music industry impacts the lives of people from around the world. With the implementation of technology, the influence of the music industry has spread to affect anyone with access to technology. Streaming services have contributed to the increased popularity of music. While there are positive effects to being able to stream music and have multiple ways of listening to it, the music industry suffers from the lack of revenue and illegal activity associated with technology. Technology has had both positive and negative effects on the music industry by affecting how people access music and how music is produced
In article “The influence of e-word-of-mouth on travel decision-making: Consumer profiles”, it says that the presence of e-WOM brings more choices and information to tourism from a wide range of users (Hernández-Méndez, Sánchez-Fernández & Muñoz-Leiva 2015). Another advantage is social media tools are considered a more credible source of information because those who generate the content have no vested interest in the companies. According to Wu and Wang, “if users trust the comments and opinions of others in the online environment, it will positively affect their trust and attitude towards the brand and their purchase intent.” (as cited in The influence of e-word-of-mouth on travel decision-making: Consumer profiles
Spotify is one of the most popular streaming services. And since its breakthrough, access to music have never been easier – just type in the name of an artist or a song and press play. The advantage of it is that listeners gets to listen to their wanted music instantly and for free and artist gets paid royalties. But since spotify’s big breakthrough there has been big debates if free music streaming is going to kill the music industry or if it’s going to help it.
It's very well known that a companies success is not only dependant on the possession of a good product or service, but the key aspect to a successful business is excellent customer service. As the market grows, now more then ever companies are emerging, they are offering very similar types of products and services. Successful customer service can be a way a business becomes original and unique, it can be the key to attracting and maintaining loyal customers. Good customer service can start-up a business while bad customer service can harm a company. An average customer that experiences an issue will complaint to 9-10 people about the problem. A customer that received support to their problem and a potential solution will tell at least five
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
The music industry started in the mid 18th century with Wolfgang Amadeus Mozart. Through the decades there has been a great increase in this industry; however, the revenues for this industry have declined by half in the last 10 years. This has been caused by music piracy, which “is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent” . After 1980’s, when the Internet was released to public, people started to develop programs and websites in which they could share music, videos, and information with...
Consumers pay millions of dollar for an advertisement campaigns, but word of mouth advertisement is absolutely free and reliable. This type of marketing spread quickly and effectively among consumers. (Jacques Bughin, 2010)
[24] Titlow, J. P. (2013). 6 Million People Pay For Spotify - Is That Good Enough? [online]. Readwrite. Available at: http://readwrite.com/2013/03/13/spotify-six-million-paid-subscribers-growth-quick-enough#awesm=~ooGnd8WPWQ88er [Accessed at 3 December 2013].