The Illegal Rise of Spotify

SPOTIFY: The Pirates Who Saved / Killed Music (The Illegal Rise of Spotify) --- Welcome to the INSANE story of Spotify. We look at how Spotify nearly failed before it even launched, how Spotify got locked in an ongoing battle with both record labels and artists, and finally how Spotify regained leverage by changing their business model. Now, Spotify is actually quite a powerful force in the music industry with a lot more control, which means there are several controversial issues for us to look at in the Spotify Story - including Spotify's history with fake streams, and its plans to become a central hub for podcasts.

Here on MagnatesMedia I bring you business stories. Today, we're looking at how Daniel Ek started Spotify, and what a huge impact Spotify has had. However if you enjoy this look into Spotify's history, check out some of the other business origin stories on MagnatesMedia!

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⌛ Chapters:
00:00 Prologue
01:16 Daniel Ek's Backstory
02:32 Part 1: How Spotify Began
04:06 Part 2: The Illegal Rise of Spotify
10:56 Noom Sponsorship
12:00 Part 3: The Precarious Economics of Spotify

#Spotify #Business #MagnatesMedia #Documentary

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MORE BUSINESS MINI MOVIES I'VE MADE:

[sallymcnuggets]

how can people say Spotify/streaming is causing artists to make less money when it literally stopped the piracy fiasco in which artists make no money from.

[daniakart]

Another genius Spotify move, elaborating on the whole “personalization of users”, is the yearly wrapped they do. I think that’s one of the things that gives them so much more leverage over Apple Music

[matman]

I've discovered dozens of great artists through Spotify's recommendations and playlists that I wouldn't know otherwise. Whether they're intentionally pulling away from big labels or not, the result is that it's probably the best place to find new music and small underground musicians. Nowhere else would you hear a #1 hit next to a song with 2K views on YT and enjoy both of them.

[d.b.c.tm]

So let me get this straight. Big record labels were only willing to give Spotify licensing deals that shaft them so badly they cant turn a profit to this day. Then the same record labels turn around and tell their artists that there is no money in streaming. And then artists go on to blame Spotify?

Its no secret that most famous people are remarkebly hollow behind their eyes but damn ...

[YaakovEzraAmiChi]

The artist blaming Spotify for their record company screwing them is insane.

Record companies have done so much more harm than good. Especially in the direction of society

[SidharthMohan]

It's ironic that record labels who were already expolting musicians took offence to Spotify doing the same thing.

[catmaster]

this was a rollercoaster it just went from spotify being bullied by music companies to spotify bullying music companies and nonconpanies

[BefoeGaming]

people have a problem with spotify promoting smaller people and 'catapulting' them, but forget what YouTube does to their content creators

[kevjun]

The biggest take I got from this is how greedy the music industry is.

[JohnGrosshans]

This video made me view Spotify and the Label's early relationship like an abusive relationship, the record labels constantly threatening to hurt spotify if they didn't do what they were told. This left spotify to figure out new ways to get out from under the oppression of the labels and now that they have with some of the things listed (podcasts, leveraging royalty free music libraries, promoting less expensive licensed music, etc) The music industry i.e. the labels is now saying they can't do that, and it's cheating... Make no mistake, the labels MADE spotify what it is today by simply giving them no other choice than to pivot to new paths in order to gain their freedom back.

[theartofbiz]

Spotify has not only never had a profitable year in its history, but it has burnt over 4billion euro since its foundation in 2007. This is largely due to the dynamics between Spotify and its suppliers (major record labels) who have huge leverage over it, thus can charge Spotify insane rates for music royalties (nearly 70% of Spotify's revenue), leaving only 30% for itself to pay for everything else. This is why Spotify must expand beyond music if it ever wants to turn profitable, thus their recent drive into podcasts, having invested over $1billion to sign deals with the likes of Joe Rogan, Kim Kardashian, Prince Harry and Meghan Markle and even the Obamas etc. I made a video explaining the problem behind Spotify's persistent lack of profits, and how they're trying to fix it. Might be interesting to you.

[ammaranuar]

Spotify should create their own music label where they can sign new artists and musicians and profit off their own homegrown artists in streaming their music as they already own their music IP from the start without having to deal with other music labels as the middle men. This creates a cycle and monopoly of music which are owned and streamed by Spotify. This gives them more leverage over the music labels and enables them to be more profitable and pay their artists better. This, in turn, would attract already existing artists to quit their old labels and join Spotify instead.

[puzzLEGO]

I actually think there's a long way to go in the music marketing industry. Spotify already has some aspects of success, but I don't see any companies capitalising on the passion a lot of people have for music. Spotify's wrapped yearly is already incredibly successful, so why not other fun gimmicks that make people feel like they have a good music taste? just speculating

[thesikon]

Im not explaining my point further but what ill say is simply that i do respect the founder of spotify for all of this, it was literally like a villain story except he isnt really the villain, its the labels that made him this way, he got so pressed and knocked to the ground but eventually he came back on his feet ONE WAY OR ANOTHER which i totally respect. THEY gave him NO CHOICE so he chose the only choice left for him, which is play the chess by the other person's rules and play him the exact way he played you. well done spotify, gg:)

[cabbage_cat]

That's why I make my own playlists and only listen to artists that I know of. If I discover something new, I'd look for more info on other platforms, then shall I add it to my playlist.

However, I recently prefer youtube music since it automatically integrates dozens of my already made playlist from youtube to youtube music. It's just... convenient. I must note that youtube music is great if you already have a paid subscription to youtube premium, as some music just cannot be played unless you have premium.

[Zeakuro]

Fuck record labels. If I didn't have spotify I'd just go back to pirating all my music again.

[smOOdiebOOdie]

As a swede, I’ve been using Spotify since 2008 and I stopped downloading (illegally) music almost over night.
In my opinion Spotify is the best thing that’s ever happened for music lovers.
Regarding the artists I don’t know but then again, like another comment here said - now they at least get something per stream than nothing at all with illegal downloading. Peace ✌🏻

[VestigialCode]

There's one thing I don't understand, these artists are getting less money and blaming spotify, but it seems to me that the real problem is that the artists gave these "labels" ownership and negotiating power over their music. If not for the labels, couldn't an artist get the full 70% revenue from their music as opposed to some percentage of that 70% that they get from their label?

[rakeau]

Seems to me like the traditional music industry companies are just as guilty as what people are now accusing Sporify of, e.g. deciding who wins and who loses. Hard to say that curated playlists etc were inorganic when .. popular music always was that way to begin with. Nevermind the fact that the big labels keep much of the money and pay artists relatively little as well.

[jonathansturm]

At least smaller artists can have their music heard now. Back in the late 60s and 70s when I was peripherally involved in the industry, typically a record company would offer a band a recording contract. The band would put enormous effort in making a record, but the record company would just put the tapes on a shelf and record a debit against the band that they would collect _if_ they ever released the recording. The contract prevented the artists from recording and releasing their music elsewhere! Most of the CDs I’ve purchased over the last 20 years were recorded by the musicians themselves who sold them at their gigs.

The funniest thing I came across was a bunch of musicians who were big in the late 60s and 70s touring together and selling compilation CDs of their hits. The CDs weren’t made by the labels; they had been pirated by the musicians! And yes, these very same musicians were railing against piracy of their music in the press. You hafta laugh...