History of Music Mediums

• Music streaming, specifically Spotify, has transformed the music industry
• Before streaming, music was often accessed by purchasing CDs or cassettes from stores

Early Digital Music Era

• Physical music media could be out of stock or unavailable in local stores
• Playing MP3 files on iTunes impacted CD sales
• Streaming services eventually reduced digital music purchases
• Physical music mediums were becoming less popular
• MP3 players were initially expensive
• Some people hoarded CDs

Evolution of Music Mediums

• Music evolved from analog record players to portable digital devices

The Compact Cassette

• Invented in 1963 by the Dutch company Phillips
• The initial purpose was for dictation machines, not high-quality music
• Phillips tasked teams to design a smaller cartridge in 1960
• By 1962 the original prototype was finished
• Phillips introduced the cassette at the Berlin Radio Show in 1963, arriving in the US a year later
• The cassette was a mobile friendly alternative to vinyl records
• Sony's Walkman, released in 1979, popularized portable cassette players
• Sony initially predicted Walkman sales of 5,000 units per month, but the Walkman sold 30,000 units the first month
• The Walkman allowed private listening anywhere, changing the relationship with music
• Music creation shifted to suit personal listening with headphones
• The Walkman and cassette were the first step towards convenient music listening

The Compact Disc

• The same company that created the cassette in 1963 also introduced the compact disc
• While the Walkman debuted in 1979, the compact disc was released in 1982
• A CD can hold about 700 megabytes of data which is equivalent to 80 minutes of music
• CDs allowed instant skipping to songs unlike cassettes, which required manual rewinding
• CDs had a longer lifespan than cassettes
• CD players were initially not portable
• The first real CD player was available in 1982
• The release of Dire Straits' "Brothers in Arms" on CD in 1985 drove consumer adoption of CDs
• Original CD packaging was large for shelf display and theft prevention, leading to 18.5 million pounds of excess trash
• CD-Rs allowed consumers to rip music to computers
• Copying music took hours but was more cost effective than buying CDs

File Sharing and Piracy

• Napster and LimeWire allowed music sharing, leading to piracy
• The launch of Napster led to large-scale piracy, causing financial strain for many music labels
• Founded by Sean Fanning and Sean Parker, this platform utilized the MP3 format
• Lawsuits forced Napster to shut down in 2002, but other similar platforms emerged
• LimeWire launched in 2000, enabling users to upload and share music files for free
• LimeWire faced legal challenges and attempted to become legitimate with "LimeWire Pro"
• LimeWire Pro was a paid version, "LimeWire Pro" became the number one download on the free version
• The Recording Industry Association of America (RIAA) was unhappy with these developments
• The RIAA tried to flood these services with fake or corrupted files
• LimeWire was shut down in 2010 after a U.S. federal court issued an injunction
• Soulja Boy gained popularity by uploading music to these services
• These services contributed to the shift towards music streaming

Spotify's Emergence

• Spotify was founded in Stockholm, Sweden, in 2006
• The official launch was in 2008
• Spotify arrived in the United Kingdom in March 2009, the first English-speaking country to get the service
• Spotify launched in the United States in 2011
• In 2010 Spotify had one million users
• In 2011 Spotify paying subscribes doubled from 1 million to 2 million
• The platform became popular because of the limitations of music piracy and lack of legal alternatives
• Spotify lets people access music legally and easily, while compensating artists fairly
• Sean Parker from Napster helped Spotify gain support from record labels
• Artists like Taylor Swift protested Spotify for underpaying artists
• Jay-Z created Tidal to compete with Spotify

Apple Music and Competition

• Apple Music joined the music streaming market in 2015
• A feud arose between Spotify and Apple because Apple took 30% of Spotify subscriptions made through the Apple App Store
• Spotify urged users to subscribe through their own website to avoid the fee
• Spotify and others criticized Apple and Google for abusing their market positions
• Spotify, among others, drafted a letter to the European Union's Anti-Trust body regarding Apple's 30% fee
• Spotify was accused of taking payments to feature songs on curated playlists, but confirmed to be false
• In 2017, Spotify launched "Rise", an initiative aimed at promoting emerging artists

Spotify Today

• In 2020 Spotify launched a written by playlist giving fans an inside look at the creators
• Spotify moved into podcasting acquiring exclusive rights to large podcasts such as The Joe Rogan Experience
• In 2022 Spotify serves over 350 million monthly users
• Spotify can be seen as a beacon of innovation or an evil Corporation
• It allows muscians to access data on their fans and promote their music
• The company has introduced a "Loud and Clear" initiative, which aims to provide more transparency on how artists are paid
• Spotify has expanded into new markets around the world and has reaches 178 countries
• In recent years, the company has focused on areas such as artificial intelligence, voice technology, and machine learning
• The Discover Weekly playlist uses machine learning to curate personalized playlists for users
• The platform allows users to create collaborative playlists and share with friends
• It supports increased transpency and fairness in artist compensation

Spotify's IPO

• In 2018, Spotify made history by becoming the first music streaming service to go public
• The company's initial public offering (IPO) on the New York Stock Exchange was highly anticipated
• The IPO was unique in that Spotify did not issue new shares or raise any new capital
• The company's existing shareholders were able to sell their shares directly to the public

Conclusion

• Spotify was founded in 2006
• As Spotify continues to evolve and adapt to new trends and technologies, it is likely to remain a major force in the music and podcasting industries for years to come.