Innovation in Assembly

Innovation in Assembly refers to the reuse and remix of already existing systems and using them in a way that may benefit the business and thus beat the competition. As Web 2.0 has risen many companies have adapted and risen, rewriting already existing business models and using new technology have risen to the surface. Once company in particular that is recently become a big contender in it’s market is Spotify.

The best definition of Spotify would probably be their own, “Spotify is an online music service offering users the ability to stream audio music files on-demand from a personal computer using Spotify’s unique proprietary technology.” (Spotify). This service is simple in its nature and allows users to quickly sign up via email address or linking an existing Facebook account. Once signed up a user can easily access the entire music library free of charge. Being a freemium experience listener’s will be occasionally presented with audio ads between songs and ads on the program itself. If the user wishes they can upgrade for $11.99/month and receive an ad free listening experience, higher bit rate (320Kbps), and the ability to sync Spotify tracks to your mobile device for offline listening.

The music marketplace was one that has been primarily dominated by iTunes many years. With their business model being song sales based off a per song basis or albums based off a fixed price. This meant that buying multiple songs or albums can become quite costly. Due to this fact, Spotify has become a big contender in the market and is slowly rising with Spotify reporting 60 million active users and over 15 million paying subscribers. With this Spotify has recently expanded with the option of Spotify Family. The family account allows other family members to join at a discounted rate, which encourages the whole family to join.

Spotify has also added the ability for users to access their databases, songs and playlist all through their API allowing developers extended functionality and easy integration into their own programs and code.

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Spotify has adapted a new way to look at sales of music and have taken a new approach with subscription based services and have also done this with one of the ways they advertise. In tandem with tradition internet marketing ads Spotify have adopted Facebook marketing. Though this marketing is not one of a tradition standard. Users who use Spotify with a linked Facebook account are accepting terms and conditions that allows Spotify to show what the user has been listening to. This content appears on the listener’s friend’s news feed. In doing this it quickly and efficiently advertises Spotify to other users and shares what the particular user is listening to. Adding this social aspect broadens the businesses horizons and offers a greater level of exposure.

Spotify has adapted in the marketplace and taken a standard business model that has been done a thousand times over and remixed it to become something new, fresh and exciting that is relevant and an innovation in Web 2.0.

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8 thoughts on “Innovation in Assembly

  1. Hi Matt! This is the second Spotify post I’ve seen this week – guess it’s a popular topic to discuss! I actually didn’t realize that Spotify and Facebook were working together, and it’s interesting how Spotify gets free advertising via those background posts – it really pays to take a closer look at those Terms and Conditions!

    Really great post!

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      1. Well, it was a great post! (And a great service too.) I love using Spotify to ‘try out’ artists and albums before I go ahead and buy the full thing.

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      2. Admittedly I don’t use the mobile app – the fact that you couldn’t choose what song to play was an immediate turn-off. Guess they really want you to pay the subscription fee. :/

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      3. Yeah understandable, I pay for a Spotify subscription since I use it so much. And in the end when I think about it I would in the end be holding hundreds of gigs of music on my phone. When I can just stream it as needed

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  2. Interesting post Matt, personally I have never used Spotify though have some experience with Pandora. Do you know of any mashups or apps that are using Spotify’s API? I’m also interested to know your thoughts regarding the extensibility of their API service, as there is limited functionality for an end user to create value outside of playlists. Have you also thought about how Spotify could create additional value for the company through their external API?

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