Spotify | Should Investors Join The Band?

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As the Swedish music service prepares to list its shares on the NYSE in the next few months, investors wonder about the sustainability of its business model: will the world’s largest streaming company stand up to quarterly pressures and convince shareholders of their long-term plan?

Spotify’s Business Model – Competing With Network Effects

Spotify leveraged network effects to gain a massive user base, and amass (almost) the entirety of the world's popular music collection. Now the company is seeking to capture value from its users, which as it turns out are the ones that pay $9.99 per month for a premium subscription. But the incentive system between the company and its users is broken.