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Environmental Analysis for Spotify

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Spotify has strengths in its unique app features targeting millennials, targeted advertising using algorithms, and expanding into new markets. However, it faces weaknesses like backlash over Joe Rogan's podcast, criticism of CEO Daniel Ek's handling of issues, and low payout rates angering artists. Opportunities include expanding into VR, supporting LGBTQ+ communities, and using social media. Threats are more generous competitors, copyright lawsuits, and economic challenges from inflation and lower wages. In conclusion, while Spotify leads in market share, it must address weaknesses like payout rates and content to maintain growth and avoid a worsening public relations crisis.

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Page 1 An Environmental Analysis for Spotify USA Sequoa Carter Full Sail University Project & Portfolio II: Business and Marketing 3/10/22
Page 2 The STEEPLE Analysis (Include Citations) PROVIDE at least one observation for each of the seven elements of the STEEPLE analysis (you can make more). These should be full paragraphs that include explanation and detail. These observations should also help you to make statements that go in the SWOT chart, below. Remember to put a “short form” citation in APA format after each observation here, and list the corresponding APA “long form” reference in the Reference section at the end. Keep the focus on the division/brand. You may observe something that affects the parent company or the industry, and which will affect the division/brand, too. It’s okay to include those observations, but always remember it’s the division/brand you’re working for. Not the parent. SOCIOLOGICAL: Spotify’s subscribers are growing by the day, and it is because they know exactly how to target millennials who make up most of their consumer demographics. According to Hamilton (2020), “Given that this generation is native to advanced technology, you should be able to determine their needs and do your best to exceed their expectations.” Spotify has done just that with their personalized playlists, recommended nostalgia playlists, the ability to listen to music anywhere anytime, the ability to bring back deleted playlists, and let you listen with your friends in real-time. Spotify is tech-savvy, and they have technology that no other music streaming company has. They understand that their consumers enjoy evolving technology platforms, and they constantly deliver great technology through their advanced app features for content creators and platform users. TECHNOLOGICAL: Spotify is popular because of its ability to bring people together and know what their listeners want. Spotify’s algorithm technology is why they have kept so many users because they know what people want, how to make features feel personalized, and where to place their advertisements. According to Werner (2020), “Spotify recommendations build on and some of the re-occurring principles of the algorithms.” Meaning that Spotify uses its algorithm technology to market products, market music, and develop new products and app features. ECONOMIC: Spotify’s place in the music streaming market is undeniable. They are undoubtedly toppling over their competitors, Apple Music, and Amazon Music. According to Porter (2022), “Spotify was the largest music streaming service in the world as of the second quarter of 2021 with a market share of 31 percent, with Apple Music in second place at 15 percent, and Amazon Music and Tencent Music each tied at third with 13 percent apiece.” Their lead in market shares acknowledges their hard work and can be a chance to acquire new investors, companies, and users. When investors see their success, they want to become a part of it, and when users know that Spotify is in the lead, they want to know why. ECOLOGICAL: Spotify is cautious in its role in making the climate better for everyone. They understand that their company is big and has offices worldwide, so they are changing their ways to reduce their carbon emissions. According to Spotify AB (2021), Spotify has now joined the Exponential Roadmap and the UN Race to Zero. These are two companies dedicated to removing carbon emissions from our climate. Their partnerships with these two companies
Page 3 show that they want to make a difference in the world and essentially save the planet. Through their awareness, Spotify also shows they care about employees, content creators, and users. Their awareness of climate change could allow Spotify to gain more platform users, investors, and new partnerships. POLITICAL: Recently with the war in Ukraine, Spotify has stood firm with its actions against Russia’s violence. According to Bloom (2022), Spotify is providing support for employees in Ukraine, and they are disabling premium accounts and closing offices in Russia. By doing this, Spotify has shown they disagree with the leader of Russia and his political views. Spotify has demonstrated that they do not condone violence and believe in more diverse and peaceful ways of politicking. LEGAL: Over the years, Spotify has had several lawsuits filed against them for copyright infringement. One of the most memorable was from Wixen Music Publishing, which was settled out of court. According to BBC News (2018), Spotify has failed to address the claims of songwriters and publishers. This is a significant issue that can be a risk against Spotify’s reputation finances for years to come if it is not addressed. Furthermore, Spotify refuses to increase pay by 5% for songwriters (Stassen, 2021). If songwriters continue to feel underpaid, there will be more negative media about Spotify, possibly discouraging artists and users to use the platform. ETHICAL: On Glassdoor, Spotify has a rate of 4.2 stars out of 5, which is good and says a lot about the type of workplace Spotify is. Their Glassdoor rating proves why Spotify is so good at what they do because of their teamwork. The Spotify Code of Conducts and Ethics (n.d.) states, "We do not accept any sort of harassment, intimidation or rudeness, and this includes comments, jokes, and questions that are insensitive/inappropriate." This part of the document is the most important because it contributes to the functionality of employees at Spotify and the ability to do their job. Spotify's code of ethics also explains why Spotify has not had many legal issues with employees or any walkouts when the company goes through legal battles.
Page 4 The SWOT Analysis (Citations optional) Provide at least three statements in each of the four sections of the SWOT chart: Strengths, Weaknesses, Opportunities and Threats. Include explanations and details within the chart that make your points clear. A phrase is not enough. Each point should be a short paragraph. HELPFUL HARMFUL
Page 5 INTERNAL STRENGTHS 1. Spotify has unique app features that consumers enjoy and find better than its competitors. Spotify realizes that most of their consumers are millennials and create the most advanced music streaming service for them. 2. Spotify does exemplary targeting advertisements to their consumers using their algorithm technology. They then use the same algorithmic technology to make song recommendations and playlists recommendations. 3. Recently, Spotify has expanded its platform in six more countries alongside the eighty countries they already had. This shows that Spotify is diverse and wants to help musicians around the globe. Spotify can bring different cultures together while also generating money from various sources. With expanding in these markets, Spotify will have the most markets worldwide compared to their competitors. WEAKNESSES 1. Joe Rogan is a weakness for Spotify because of his racial slurs. Joe Rogan caused Spotify to get bad press and caused famous music artists Neil Young to pull their music from Spotify. Joe Rogan's actions have led to Spotify losing more than two billion dollars in market value over three days. 2. Daniel Ek is also a weakness for Spotify because he rudely addresses sensitive topics. Daniel Ek is good at his job; however, most content creators and subscribers do not like him. If Daniel does not start approaching sensitive topics kindly, it could cost him more lousy press and a decline in subscribers and content creators. 3. Spotify’s payout rates are the lowest of most big music streaming companies. Low payout rates could harm Spotify because it causes content creators to protest the company and much negative press. These low payout rates are causing independent artists and labels to leave Spotify and turn to its competitors. Low payouts could cause Spotify revenue and content creators and subscribers to decline.
Page 6 EXTERNAL OPPORTUNITIES 1. Expanding an app in Virtual Reality Technology can help Spotify generate more income for their company and content creators. It could also help them remain the best music streaming service amongst competitors. 2. Social change in the LGBTQ+ rights movement can be good for Spotify. It will give Spotify a chance to recognize and support these communities in and out of the workplace. This can help Spotify gain new subscribers, content creators, and employees from the LGBTQ+ community. 3. Social change in terms of technology can also be good for Spotify because people communicate more through social media. Spotify can utilize social media and features on their mobile app to connect users with similar users and help connect artists with fans. They can also use social media and app features for marketing their products. THREATS 1. Spotify’s competitors have more payouts per stream, better audio quality, and better deals, resulting in Spotify losing subscribers and content creators. 2. Spotify has lawsuits stacked against them because of copyright infringement towards songwriters and music creators. These lawsuits put their company reputation at risk and cost them money from court and settlements. 3. The economy puts Spotify at risk right now. Currently, inflation is rising, which has caused Spotify to increase prices, which could cost them subscribers. Also, the average hourly earnings for employees in America has decreased 0.8% and could have Spotify employees looking for new jobs or affect their work performance.
Page 7 Conclusions: (Include Citations) Findings lead to Conclusions. In two or three well-developed paragraphs, provide conclusions for the company based on your analysis of the findings. This means talking about the meaning of your findings. For instance, is there growing negative feedback from customers based on perceived changes to quality? Then it would be fair to say that the brand probably has a public relations crisis looming in the near future. Try to assess the fit of the current market position for your product. How does it compare to its competitors and its industry as a whole? Where does it excel? Where can it improve? How does the company’s financial health factor into what it can and can’t do? With this exercise, you should begin to identify what questions your client hired you to answer. Note what should be new goals and actions for the future. Note whether there should be any changes to product/service line, target market or message. You will elaborate in Week 4 when you make specific, future oriented and actionable recommendations for your company. Spotify is a very socially conscious and technologically advanced music streaming company. They are the best of the best. Spotify knows how and when to please its consumers through its app features and its presence on social media (Germain, 2022). They support the different cultures, genders, and sexualities within the world and do an excellent job of making everyone feel included on their platform (Spotify AB, n.d.). Spotify is not afraid to express its passion for helping the climate by contributing to and joining two of the most prominent zero-emission organizations (Spotify AB, 2021). Spotify uses its platform to constantly raises awareness about topics that matter in the world, and more recently, that topic would be the war between Russia and Ukraine. Spotify makes sure to stand against violence and makes sure its users understand they do not condone war (Bloom, 2022). They make sure their content creators' voices are heard. However, negativity surrounds the founder and CEO of Spotify and his intentions for the music industry and its creators. The negative image surrounding Daniel Ek could potentially make all the good Spotify has been doing in the world go to waste and has already had a destructive impact on their finances, in a loss of two billion dollars (Spangler, 2022). Spotify has also received negative feedback regarding copyright lawsuits and underpaid content creators (BBC News, 2018; Stassen, 2021). Although Spotify is a wealthy company, its financial loss could be harmful during a time of rising inflation and decreasing wages in the U.S because it puts Spotify’s investors, employees, and content creators at risk (U.S. Bureau of Labor Statistics, 2022). Nevertheless, Spotify is in good financial health with increasing users, subscribers, and revenue and a 31% market share amongst its competitors (Spotify Technology S.A., 2022; Porter, 2022). Spotify is the most likable music streaming app because of its ability to appeal to millennials, their primary consumer demographic (Hamilton, 2020). They are also one of the best companies to work for in 2022 because of their ratings on Glassdoor and their moral code of ethics (Spotify Code of Conducts and Ethics, n.d.). Spotify is a great company, and its future is looking bright, but there are always improvements that can be made, one being its negative image in the media. One way to
Page 8 improve their image is by doing more hands-on work in their community that aligns with their ethics, principles, and politics. Spotify would also benefit from diving into the world of Virtual Reality by creating more jobs for employees, more revenue for the company, more income for content creators, and bringing more subscribers to Spotify. Overall, Spotify remains firm in its position amongst all music streaming services. Spotify is a powerful company socially, technologically, economically, ecologically, and ethically, regardless of its failures in legal battles. Their strengths and opportunities outweigh their weaknesses and threats. Spotify is one of the best music streaming companies globally, and they continue to make changes for the betterment of the people and music. References: In APA format, list each reference you used (at least five). Each reference in this section should have a corresponding “short form” citation in the STEEPLE section or the Conclusions section. BBC News. (2018, December 21). Spotify settles $1.6bn lawsuit over songwriters' rights. BBC News. Retrieved March 13, 2022, from https://www.bbc.com/news/business-46646918 Bloom, M. (2022, March 2). Spotify closes office in Russia and suspends premium accounts in response to Ukraine invasion. Pitchfork. Retrieved March 13, 2022, from https://pitchfork.com/news/spotify-closes-russian-office-indefinitely-in-response-to- ukraine-invasion/ Germain, T. (2022, February 17). Best Music Streaming Services. Consumer Reports. Retrieved March 9, 2022, from https://www.consumerreports.org/best-music-streaming- service-for-you-a2126039193/ Glassdoor,Inc. (n.d.). Spotify employee reviews - glassdoor. Glassdoor. Retrieved March 13, 2022, from https://www.glassdoor.com/Reviews/Spotify-Reviews- E408251.htm Irshad, S., & Perkis, A. (2020, October 26). Increasing user engagement in virtual reality:the role of interactive digital narratives to trigger emotional responses: Proceedings of the 11th Nordic Conference on human-computer interaction: Shaping experiences, shaping society. ACM Other conferences. Retrieved March 9, 2022, from https://dl.acm.org/doi/abs/10.1145/3419249.3421246 Jarvey, N. (2018, May 30). Daniel Ek admits Spotify anti-hate policy was "Rolled out wrong". The Hollywood Reporter. Retrieved March 9, 2022, from https://www.hollywoodreporter.com/business/digital/daniel-ek-admits-spotify-anti-hate- policy-was-rolled-wrong-1116042/ Koombea, Inc. (2020, August 5). How to develop a great app for millennials. Koombea. Retrieved March 13, 2022, from https://www.koombea.com/blog/how-to-develop-a- great-app-for-millennials/
Page 9 Limbong, A. (2020, August 10). Comments from Spotify CEO anger some musicians. NPR. Retrieved March 9, 2022, from https://www.npr.org/2020/08/10/901064434/comments-from-spotify-ceo-anger-some- musicians Nield, D. (2021, March 16). 12 things you didn't know you could do in Spotify. Gizmodo. Retrieved March 13, 2022, from https://gizmodo.com/12-things-you-didnt-know-you- could-do-in-spotify-1846470945 Porter, J. (2022, January 20). Streaming music report sheds light on battle between Spotify, Amazon, Apple, and google. The Verge. Retrieved March 13, 2022, from https://www.theverge.com/2022/1/20/22892939/music-streaming-services-market- share-q2-2021-spotify-apple-amazon-tencent-youtube Spangler, T. (2022, January 29). Spotify lost more than $2 billion in market value after Neil Young pulled his music over Joe Rogan's podcast. Variety. Retrieved March 13, 2022, from https://variety.com/2022/digital/news/spotify-2-billion-market-cap-neil-young- joe-rogan-1235166798/ Spotify AB. (2021, November 17). Spotify expands to six more countries around the world. Spotify. Retrieved March 13, 2022, from https://newsroom.spotify.com/2021-11- 17/spotify-expands-to-six-more-countries-around-the-world/ Spotify AB. (2021, September 28). Spotify's next step on our path to net zero emissions. Spotify. Retrieved March 13, 2022, from https://newsroom.spotify.com/2021-09- 28/spotifys-next-step-on-our-path-to-net-zero-emissions/ Spotify AB. (n.d.). Diversity, inclusion & belonging. Life at Spotify. Retrieved March 13, 2022, from https://www.lifeatspotify.com/diversity-equity-impact/diversity-inclusion- belonging Spotify Code of Conducts and Ethics. (2018).Welcome to the Spotify Code of Conduct and Ethics. This is how we roll. Spotify Technology S.A. http://q4live.s22.clientfiles.s3- website-us-east-1.amazonaws.com/540910603/files/doc_downloads/govDocs/Code-of- Conduct-FINAL-(2018)-GABS.pdf Spotify Technology S.A. (2022, February 2). Spotify Technology S.A. Announces Financial Results for Fourth Quarter 2021. Spotify Investors . Retrieved March 13, 2022, from https://investors.spotify.com/financials/press-release-details/2022/Spotify- Technology-S.A.-Announces-Financial-Results-for-Fourth-Quarter-2021/default.aspx Stassen, M. (2021, October 14). Spotify and other streaming services propose 'lowest royalty rates in history' for songwriters. Music Business Worldwide. Retrieved March 13, 2022, from https://www.musicbusinessworldwide.com/spotify-and-other-streaming- services-propose-lowest-royalty-rates-in-history-for-songwriters/ U.S. Bureau of Labor Statistics. (2022, March 10). Home. U.S. Bureau of Labor Statistics. Retrieved March 13, 2022, from https://www.bls.gov/
Page 10 Werner, A. (2020). Organizing music, organizing gender: algorithmic culture and Spotify recommendations. Popular Communication, 18(1), 78–90. https://doi- org.oclc.fullsail.edu/10.1080/15405702.2020.1715980 Wright, L. T. (2022, February 3). Why do so many musicians hate Spotify? Spinditty. Retrieved March 13, 2022, from https://spinditty.com/industry/why-so-many-artists-hate- spotify Yonata, J. (2022, February 9). How much do Spotify & other music streaming platforms pay per stream. Headphonesty. Retrieved March 9, 2022, from https://www.headphonesty.com/2021/11/how-much-does-spotify-pay-per-stream/

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Environmental Analysis for Spotify

  • 1. Page 1 An Environmental Analysis for Spotify USA Sequoa Carter Full Sail University Project & Portfolio II: Business and Marketing 3/10/22
  • 2. Page 2 The STEEPLE Analysis (Include Citations) PROVIDE at least one observation for each of the seven elements of the STEEPLE analysis (you can make more). These should be full paragraphs that include explanation and detail. These observations should also help you to make statements that go in the SWOT chart, below. Remember to put a “short form” citation in APA format after each observation here, and list the corresponding APA “long form” reference in the Reference section at the end. Keep the focus on the division/brand. You may observe something that affects the parent company or the industry, and which will affect the division/brand, too. It’s okay to include those observations, but always remember it’s the division/brand you’re working for. Not the parent. SOCIOLOGICAL: Spotify’s subscribers are growing by the day, and it is because they know exactly how to target millennials who make up most of their consumer demographics. According to Hamilton (2020), “Given that this generation is native to advanced technology, you should be able to determine their needs and do your best to exceed their expectations.” Spotify has done just that with their personalized playlists, recommended nostalgia playlists, the ability to listen to music anywhere anytime, the ability to bring back deleted playlists, and let you listen with your friends in real-time. Spotify is tech-savvy, and they have technology that no other music streaming company has. They understand that their consumers enjoy evolving technology platforms, and they constantly deliver great technology through their advanced app features for content creators and platform users. TECHNOLOGICAL: Spotify is popular because of its ability to bring people together and know what their listeners want. Spotify’s algorithm technology is why they have kept so many users because they know what people want, how to make features feel personalized, and where to place their advertisements. According to Werner (2020), “Spotify recommendations build on and some of the re-occurring principles of the algorithms.” Meaning that Spotify uses its algorithm technology to market products, market music, and develop new products and app features. ECONOMIC: Spotify’s place in the music streaming market is undeniable. They are undoubtedly toppling over their competitors, Apple Music, and Amazon Music. According to Porter (2022), “Spotify was the largest music streaming service in the world as of the second quarter of 2021 with a market share of 31 percent, with Apple Music in second place at 15 percent, and Amazon Music and Tencent Music each tied at third with 13 percent apiece.” Their lead in market shares acknowledges their hard work and can be a chance to acquire new investors, companies, and users. When investors see their success, they want to become a part of it, and when users know that Spotify is in the lead, they want to know why. ECOLOGICAL: Spotify is cautious in its role in making the climate better for everyone. They understand that their company is big and has offices worldwide, so they are changing their ways to reduce their carbon emissions. According to Spotify AB (2021), Spotify has now joined the Exponential Roadmap and the UN Race to Zero. These are two companies dedicated to removing carbon emissions from our climate. Their partnerships with these two companies
  • 3. Page 3 show that they want to make a difference in the world and essentially save the planet. Through their awareness, Spotify also shows they care about employees, content creators, and users. Their awareness of climate change could allow Spotify to gain more platform users, investors, and new partnerships. POLITICAL: Recently with the war in Ukraine, Spotify has stood firm with its actions against Russia’s violence. According to Bloom (2022), Spotify is providing support for employees in Ukraine, and they are disabling premium accounts and closing offices in Russia. By doing this, Spotify has shown they disagree with the leader of Russia and his political views. Spotify has demonstrated that they do not condone violence and believe in more diverse and peaceful ways of politicking. LEGAL: Over the years, Spotify has had several lawsuits filed against them for copyright infringement. One of the most memorable was from Wixen Music Publishing, which was settled out of court. According to BBC News (2018), Spotify has failed to address the claims of songwriters and publishers. This is a significant issue that can be a risk against Spotify’s reputation finances for years to come if it is not addressed. Furthermore, Spotify refuses to increase pay by 5% for songwriters (Stassen, 2021). If songwriters continue to feel underpaid, there will be more negative media about Spotify, possibly discouraging artists and users to use the platform. ETHICAL: On Glassdoor, Spotify has a rate of 4.2 stars out of 5, which is good and says a lot about the type of workplace Spotify is. Their Glassdoor rating proves why Spotify is so good at what they do because of their teamwork. The Spotify Code of Conducts and Ethics (n.d.) states, "We do not accept any sort of harassment, intimidation or rudeness, and this includes comments, jokes, and questions that are insensitive/inappropriate." This part of the document is the most important because it contributes to the functionality of employees at Spotify and the ability to do their job. Spotify's code of ethics also explains why Spotify has not had many legal issues with employees or any walkouts when the company goes through legal battles.
  • 4. Page 4 The SWOT Analysis (Citations optional) Provide at least three statements in each of the four sections of the SWOT chart: Strengths, Weaknesses, Opportunities and Threats. Include explanations and details within the chart that make your points clear. A phrase is not enough. Each point should be a short paragraph. HELPFUL HARMFUL
  • 5. Page 5 INTERNAL STRENGTHS 1. Spotify has unique app features that consumers enjoy and find better than its competitors. Spotify realizes that most of their consumers are millennials and create the most advanced music streaming service for them. 2. Spotify does exemplary targeting advertisements to their consumers using their algorithm technology. They then use the same algorithmic technology to make song recommendations and playlists recommendations. 3. Recently, Spotify has expanded its platform in six more countries alongside the eighty countries they already had. This shows that Spotify is diverse and wants to help musicians around the globe. Spotify can bring different cultures together while also generating money from various sources. With expanding in these markets, Spotify will have the most markets worldwide compared to their competitors. WEAKNESSES 1. Joe Rogan is a weakness for Spotify because of his racial slurs. Joe Rogan caused Spotify to get bad press and caused famous music artists Neil Young to pull their music from Spotify. Joe Rogan's actions have led to Spotify losing more than two billion dollars in market value over three days. 2. Daniel Ek is also a weakness for Spotify because he rudely addresses sensitive topics. Daniel Ek is good at his job; however, most content creators and subscribers do not like him. If Daniel does not start approaching sensitive topics kindly, it could cost him more lousy press and a decline in subscribers and content creators. 3. Spotify’s payout rates are the lowest of most big music streaming companies. Low payout rates could harm Spotify because it causes content creators to protest the company and much negative press. These low payout rates are causing independent artists and labels to leave Spotify and turn to its competitors. Low payouts could cause Spotify revenue and content creators and subscribers to decline.
  • 6. Page 6 EXTERNAL OPPORTUNITIES 1. Expanding an app in Virtual Reality Technology can help Spotify generate more income for their company and content creators. It could also help them remain the best music streaming service amongst competitors. 2. Social change in the LGBTQ+ rights movement can be good for Spotify. It will give Spotify a chance to recognize and support these communities in and out of the workplace. This can help Spotify gain new subscribers, content creators, and employees from the LGBTQ+ community. 3. Social change in terms of technology can also be good for Spotify because people communicate more through social media. Spotify can utilize social media and features on their mobile app to connect users with similar users and help connect artists with fans. They can also use social media and app features for marketing their products. THREATS 1. Spotify’s competitors have more payouts per stream, better audio quality, and better deals, resulting in Spotify losing subscribers and content creators. 2. Spotify has lawsuits stacked against them because of copyright infringement towards songwriters and music creators. These lawsuits put their company reputation at risk and cost them money from court and settlements. 3. The economy puts Spotify at risk right now. Currently, inflation is rising, which has caused Spotify to increase prices, which could cost them subscribers. Also, the average hourly earnings for employees in America has decreased 0.8% and could have Spotify employees looking for new jobs or affect their work performance.
  • 7. Page 7 Conclusions: (Include Citations) Findings lead to Conclusions. In two or three well-developed paragraphs, provide conclusions for the company based on your analysis of the findings. This means talking about the meaning of your findings. For instance, is there growing negative feedback from customers based on perceived changes to quality? Then it would be fair to say that the brand probably has a public relations crisis looming in the near future. Try to assess the fit of the current market position for your product. How does it compare to its competitors and its industry as a whole? Where does it excel? Where can it improve? How does the company’s financial health factor into what it can and can’t do? With this exercise, you should begin to identify what questions your client hired you to answer. Note what should be new goals and actions for the future. Note whether there should be any changes to product/service line, target market or message. You will elaborate in Week 4 when you make specific, future oriented and actionable recommendations for your company. Spotify is a very socially conscious and technologically advanced music streaming company. They are the best of the best. Spotify knows how and when to please its consumers through its app features and its presence on social media (Germain, 2022). They support the different cultures, genders, and sexualities within the world and do an excellent job of making everyone feel included on their platform (Spotify AB, n.d.). Spotify is not afraid to express its passion for helping the climate by contributing to and joining two of the most prominent zero-emission organizations (Spotify AB, 2021). Spotify uses its platform to constantly raises awareness about topics that matter in the world, and more recently, that topic would be the war between Russia and Ukraine. Spotify makes sure to stand against violence and makes sure its users understand they do not condone war (Bloom, 2022). They make sure their content creators' voices are heard. However, negativity surrounds the founder and CEO of Spotify and his intentions for the music industry and its creators. The negative image surrounding Daniel Ek could potentially make all the good Spotify has been doing in the world go to waste and has already had a destructive impact on their finances, in a loss of two billion dollars (Spangler, 2022). Spotify has also received negative feedback regarding copyright lawsuits and underpaid content creators (BBC News, 2018; Stassen, 2021). Although Spotify is a wealthy company, its financial loss could be harmful during a time of rising inflation and decreasing wages in the U.S because it puts Spotify’s investors, employees, and content creators at risk (U.S. Bureau of Labor Statistics, 2022). Nevertheless, Spotify is in good financial health with increasing users, subscribers, and revenue and a 31% market share amongst its competitors (Spotify Technology S.A., 2022; Porter, 2022). Spotify is the most likable music streaming app because of its ability to appeal to millennials, their primary consumer demographic (Hamilton, 2020). They are also one of the best companies to work for in 2022 because of their ratings on Glassdoor and their moral code of ethics (Spotify Code of Conducts and Ethics, n.d.). Spotify is a great company, and its future is looking bright, but there are always improvements that can be made, one being its negative image in the media. One way to
  • 8. Page 8 improve their image is by doing more hands-on work in their community that aligns with their ethics, principles, and politics. Spotify would also benefit from diving into the world of Virtual Reality by creating more jobs for employees, more revenue for the company, more income for content creators, and bringing more subscribers to Spotify. Overall, Spotify remains firm in its position amongst all music streaming services. Spotify is a powerful company socially, technologically, economically, ecologically, and ethically, regardless of its failures in legal battles. Their strengths and opportunities outweigh their weaknesses and threats. Spotify is one of the best music streaming companies globally, and they continue to make changes for the betterment of the people and music. References: In APA format, list each reference you used (at least five). Each reference in this section should have a corresponding “short form” citation in the STEEPLE section or the Conclusions section. BBC News. (2018, December 21). Spotify settles $1.6bn lawsuit over songwriters' rights. BBC News. Retrieved March 13, 2022, from https://www.bbc.com/news/business-46646918 Bloom, M. (2022, March 2). Spotify closes office in Russia and suspends premium accounts in response to Ukraine invasion. Pitchfork. Retrieved March 13, 2022, from https://pitchfork.com/news/spotify-closes-russian-office-indefinitely-in-response-to- ukraine-invasion/ Germain, T. (2022, February 17). Best Music Streaming Services. Consumer Reports. Retrieved March 9, 2022, from https://www.consumerreports.org/best-music-streaming- service-for-you-a2126039193/ Glassdoor,Inc. (n.d.). Spotify employee reviews - glassdoor. Glassdoor. Retrieved March 13, 2022, from https://www.glassdoor.com/Reviews/Spotify-Reviews- E408251.htm Irshad, S., & Perkis, A. (2020, October 26). Increasing user engagement in virtual reality:the role of interactive digital narratives to trigger emotional responses: Proceedings of the 11th Nordic Conference on human-computer interaction: Shaping experiences, shaping society. ACM Other conferences. Retrieved March 9, 2022, from https://dl.acm.org/doi/abs/10.1145/3419249.3421246 Jarvey, N. (2018, May 30). Daniel Ek admits Spotify anti-hate policy was "Rolled out wrong". The Hollywood Reporter. Retrieved March 9, 2022, from https://www.hollywoodreporter.com/business/digital/daniel-ek-admits-spotify-anti-hate- policy-was-rolled-wrong-1116042/ Koombea, Inc. (2020, August 5). How to develop a great app for millennials. Koombea. Retrieved March 13, 2022, from https://www.koombea.com/blog/how-to-develop-a- great-app-for-millennials/
  • 9. Page 9 Limbong, A. (2020, August 10). Comments from Spotify CEO anger some musicians. NPR. Retrieved March 9, 2022, from https://www.npr.org/2020/08/10/901064434/comments-from-spotify-ceo-anger-some- musicians Nield, D. (2021, March 16). 12 things you didn't know you could do in Spotify. Gizmodo. Retrieved March 13, 2022, from https://gizmodo.com/12-things-you-didnt-know-you- could-do-in-spotify-1846470945 Porter, J. (2022, January 20). Streaming music report sheds light on battle between Spotify, Amazon, Apple, and google. The Verge. Retrieved March 13, 2022, from https://www.theverge.com/2022/1/20/22892939/music-streaming-services-market- share-q2-2021-spotify-apple-amazon-tencent-youtube Spangler, T. (2022, January 29). Spotify lost more than $2 billion in market value after Neil Young pulled his music over Joe Rogan's podcast. Variety. Retrieved March 13, 2022, from https://variety.com/2022/digital/news/spotify-2-billion-market-cap-neil-young- joe-rogan-1235166798/ Spotify AB. (2021, November 17). Spotify expands to six more countries around the world. Spotify. Retrieved March 13, 2022, from https://newsroom.spotify.com/2021-11- 17/spotify-expands-to-six-more-countries-around-the-world/ Spotify AB. (2021, September 28). Spotify's next step on our path to net zero emissions. Spotify. Retrieved March 13, 2022, from https://newsroom.spotify.com/2021-09- 28/spotifys-next-step-on-our-path-to-net-zero-emissions/ Spotify AB. (n.d.). Diversity, inclusion & belonging. Life at Spotify. Retrieved March 13, 2022, from https://www.lifeatspotify.com/diversity-equity-impact/diversity-inclusion- belonging Spotify Code of Conducts and Ethics. (2018).Welcome to the Spotify Code of Conduct and Ethics. This is how we roll. Spotify Technology S.A. http://q4live.s22.clientfiles.s3- website-us-east-1.amazonaws.com/540910603/files/doc_downloads/govDocs/Code-of- Conduct-FINAL-(2018)-GABS.pdf Spotify Technology S.A. (2022, February 2). Spotify Technology S.A. Announces Financial Results for Fourth Quarter 2021. Spotify Investors . Retrieved March 13, 2022, from https://investors.spotify.com/financials/press-release-details/2022/Spotify- Technology-S.A.-Announces-Financial-Results-for-Fourth-Quarter-2021/default.aspx Stassen, M. (2021, October 14). Spotify and other streaming services propose 'lowest royalty rates in history' for songwriters. Music Business Worldwide. Retrieved March 13, 2022, from https://www.musicbusinessworldwide.com/spotify-and-other-streaming- services-propose-lowest-royalty-rates-in-history-for-songwriters/ U.S. Bureau of Labor Statistics. (2022, March 10). Home. U.S. Bureau of Labor Statistics. Retrieved March 13, 2022, from https://www.bls.gov/
  • 10. Page 10 Werner, A. (2020). Organizing music, organizing gender: algorithmic culture and Spotify recommendations. Popular Communication, 18(1), 78–90. https://doi- org.oclc.fullsail.edu/10.1080/15405702.2020.1715980 Wright, L. T. (2022, February 3). Why do so many musicians hate Spotify? Spinditty. Retrieved March 13, 2022, from https://spinditty.com/industry/why-so-many-artists-hate- spotify Yonata, J. (2022, February 9). How much do Spotify & other music streaming platforms pay per stream. Headphonesty. Retrieved March 9, 2022, from https://www.headphonesty.com/2021/11/how-much-does-spotify-pay-per-stream/