SPOTIFY IN JAPAN

Spotify

• Online music streaming service.
• 70 million users, 15 million premium users. Free service that is supported by advertising.
• Present in approximately 55 countries.
• Private ownership, founded in 2006 by Daniel Elk and Marin Lorentzon.

Reasons for Going Abroad

• Market seeking motives.
• Help in enter Asian market.
• Help Spotify become profitable.

Why Japan?

• Music market is second-largest one in the world.
• 50 million mobile users 20 million internet users.
• Copyright enforcement laws
• Music market worth $3 Billion in 2013

Potential Barriers to Entry

• Demanding customers.
• Complex Music Licensing.
• 85 % of music purchases are CD´s.
• Strong local culture.

Countermeasures

• Develop partnership with local brands (co-operative agreements).
• Enter the market step by step to build trust.
• Develop specific offers.

Strategy

• Build strong partnerships with local businesses.
• Entering Japan through B2B Business model.
• Adapting the service to local music taste.

Strategy

• KARAOKE video game developed with Sony.
• HYBRID entry mode- spotify playlist available in the game.
• Flagship in Singapore.

Strategy

• Adapt premium price to the currency and income.
• Target young people.
• Advertising campaign featuring Japanese artists.

Conclusion