Summer 1999. Two teenagers, Shawn Fanning and Sean Parker launch a new peer-to-peer file sharing website called Napster…
Within just 2 years, Napster had gained such notoriety that major record labels and popular artists filed major lawsuits against Napster for privacy and copyright infringements, citing the mp3 music sharing website as a threat to the entire global music industry. While others argued Napster was actually stimulating more sales through its promotional power alone. Napster, eventually shut down its service, agreeing to pay music creators and copyright owners huge settlement fees. To pay for these fees, Napster pivoted to a paid subscription service, losing users, and eventually filing for bankruptcy, with the Napster brand going on to survive a series of acquisitions.
At it’s peak, Napster had over 80 million users uploading, sharing and downloading music, turning the entire music industry on its head and opening the door to a whole new market in its wake…
Fast forward to 2006. Spotify is founded by Daniel Ek and Martin Lorentzon in Stockholm, Sweden.
Launched a few years later to tackle the issues of music piracy, offering a seemingly infinite, catalogue of music for audiences to listen to. Rather than get paid per download, artists received part of a royalty payment each time their song was streamed. Spotify’s business model relied on driving revenue from advertisements played on Spotify’s free version, and subscription fees incurred to access Spotify’s ad-free Premium service.
Eventually launching in the U.S, mitigating the complexities of international music licensing, Spotify quickly grew, emerging as the best quality streaming service for mass consumption, and eclipsing Apple’s strong hold in the market.
Today, Spotify has 180 million active users across 65 regions, including over 83 million paying subscribers and one of the biggest IPO’s seen in the tech sector since 2012, ending its first day of trading with a consolidated market value of $27bn.
Despite never having made a profit, and facing stiff competition from Apple Music, and Amazon Music, Spotify is now worth about $32bn
Continuing our focus this month, on the growing dominance of the worlds largest streaming companies, we take a closer look at how Spotify delivers customer service on Twitter over the last 7 days (01/08/18 to 08/08/18)
Avg Response Time
If you tweet the SpotifyCares team you should expect to receive a response within 11 mins. It’s a magnificent effort from the team under the pressure of a growing social media crisis…
SpotifyCares Avg Response Time (01/08/18 to 08/08/18)
It’s been a busy week for the SpotifyCares team as they deal with a social media crisis around the removal of #AlexJones content on their platform. In the last 7 days the SpotifyCares team have received 7,275 public mentions to their help handles, with average weekly mentions of 1,425 across the Music Category on HelpHandles.com the SpotifyCares team are in the top 10% of brands by public mentions this week.
SpotifyCares Inbound Mentions (01/08/18 to 08/08/18)
Of the 7,275 public mentions received, the SpotifyCares team stayed focused on delivering for their subscribers and responded to 33% (2,400) mentions publicly, just short of the avg response rate for the music category…
SpotifyCares Response Rate (01/08/18 to 08/08/18)
Responses under 30mins
Of those responses made, 94% (2,256) responses were made quickly within 30mins. Proving that the SpotifyCares team are able to deal with a crisis and reach out to their subscribes in a timely manner on Twitter.
SpotifyCares Responses 30mins (01/08/18 to 08/08/18)
The most popular hashtags used this week reflect the feelings from the public as Spotify come under pressure to follow in the footsteps of Apple, Facebook, and YouTube to remove potentially harmful content on their platform.
SpotifyCares Popular Hashtags (01/08/18 to 08/08/18)
This wave of negative rhetoric on Twitter towards Spotify has resulted in a lower sentiment score for the SpotifyCares Team. We can also see that the team have adopted a canned response to the crisis, responding to subscribers with a cut and paste response, this sees there score dip below the average for the Music Category and entering the bottom 30% of brands by sentiment on HelpHandles.com
Hey! We take reports of potential hate content on our platform seriously, and work to remove any content in violation of our hate content policy /TS
— SpotifyCares (@SpotifyCares) August 7, 2018
Hi there! We take reports of potential hate content on our platform seriously, and work to remove any content in violation of our hate content policy. For help with anything else, feel free to give us a shout /LG
— SpotifyCares (@SpotifyCares) August 7, 2018
The rise of online streaming services cannot be ignored. Once seen as just a fad, the internet has given birth to some of the largest, most innovative disruptive brands and services, all of whom have capitalised on its mass market potential to deliver more accessible and efficient services direct to consumers.
As we look at the world around us, we see a society entirely consumed by digital, online services, delivered across a wide range of devices, creating an unprecedented digital footprint of data that has never been seen before.
For the likes of the traditional regulated media giants of Disney, the temptation to enter this brave new world has been just too, well, tempting.
With preparations in place to enter the digital market with the launch of their own online streaming services, the traditional media giants have finally woken up to the reality of a society that is consuming and producing digital content at an alarming rate. This in turn is creating massive transformation of traditional corporations who are all seeking to stay relevant and avoid the fate of sinking into oblivion at the hands of a rapidly changing world.
The survivors in this increasingly digital world will be the ones who can understand and execute the full potential of the online space, who can successfully transform their existing legacy operations into much leaner, more efficient organisations that are laser focused on the customer and are able to deliver exceptional experiences at scale.