Spotify’s mission, vision, and core values have established the global image of the organization, along with an emphasis on the effectiveness of its operation. Thus, through its vision and statements, Spotify has obtained and identified a path to command and strategize a large following as a network of online music streaming.
From its early days in 2006, Daniel Ek and Martin Lorentzon, the founders of the company, incorporated this element into the operational activities of the business. This allowed the company to grow rapidly, with 232 million monthly active users. In 2020, Spotify will have over 320 million active monthly users and 144 million paid users. Its active monthly users grew by 29% in Q4 of 2020, while paid users jumped by 27%.
Despite solid growth, Spotify reported a quarterly loss of around $118 million, a big shift since making a quarterly profit in Q3. Among the key drivers the company cited is its ongoing decision to offer discounted plans to attract new users to the service.
Spotify Vision Statement
The vision of Spotify is:
“We envision a cultural platform where professional creators can break free of their medium’s constraints and where everyone can enjoy an immersive artistic experience that enables us to empathize with each other and to feel part of a greater whole.”
In this regard, the vision of Spotify is based on its objective to ensure that its services result in a win-win situation for the fans and artists. This allows them to feel a sense of belonging to the vision and bigger picture of the company, along with the feeling of being appreciated.
The vision statement of Spotify is based on the following points:
- Stimulating Harmony and Empathy: Spotify focuses on acquiring a more significant role rather than merely identifying itself as a service provider. The company’s focus is to perform a socially rooted role in society instead of only fulfilling the needs and requirements of the industry by providing on-demand music.
The idea of Spotify lies in the fact that it weaves and develops a sense of linkage and connection between people in everything that it does, which is highlighted by the incorporation of culturalism within the platform of the company.
- Breaking from Medium Restrictions and Constraints: The application of medium barriers has significantly hindered the progress of the artists over the long term. However, the model utilized by Spotify within the music industry addresses and identifies this critical element.
To resolve this issue and offer better and improved opportunities for growth, Spotify identified and adopted a well-regulated yet open option that allowed the artists to test their creativity. As Spotify monitored this element, it was adequately handled without placing any pressure on the artists. In November 2020, Spotify began testing a new service to help artists and labels control how their music is discovered on the platform. Using its personalization algorithms, they can identify the music they wish to prioritize for the system to surface to listeners.
Spotify Mission Statement
The mission statement of Spotify is based on the idea, which is as follows:
“Our mission is to unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.”
Spotify’s mission statement focuses on transforming these goals into reality and is directed towards the achievement of the goals of the company from a broader perspective. In this regard, these are the key features of their mission statement:
- Improving the Lives of the General Public: To satisfy the feature, Spotify ensures its platform is up-to-date and interactive. The company acknowledges the need to create sustainable livelihoods and provide a critical digital space for its target audience.
Artists have a better chance to access and reach out to their broader fan base more efficiently by utilizing the respective platform of Spotify.
Furthermore, to make sure that the digital content produced by the artists reaches the appropriate audience through its targeting criteria, making it profitable for individuals. As a result, the idea of enabling the artist “to live off their art” is echoed in the mission statement.
- Global Presence: The management of Spotify implemented a strategic approach that reaches out to as many users as possible so that the users’ needs can be satisfied globally. The principle idea of this approach is to ensure that there are no limitations for anyone, regardless of whether they are fans or artists, upon using the app.
Regardless of genre, culture, or any other boundary, the company ensures connectivity with everyone. This can be identified by the fact that Spotify is proud of having access to billions of fans and millions of artists, allowing it to reach its users globally. Spotify has been widening its lead as the largest music streaming service globally. It has 144 million paid users, more than double the users of second-placed Apple at around 60 million and third-placed Amazon Music at 55 million.
Spotify Core Values
The core values of Spotify are:
- Innovation: Spotify always innovates new products and solutions to enhance the experience. In 2020, it rolled out a video feature that allows select podcasts like “Book of Basketball 2.0” and “The Morning Toast” to create and stream audio and video content on its app.
- Passion: The founders’ passion for music is why Spotify was established. Since its launch in 2008, it has delivered over 60 million tracks to music lovers globally and redefined how users experience music.
- Collaboration: Spotify values collaboration and has recently partnered with big names like Joe Rogan, Michelle Obama, and Kim Kardashian West. It continues experimenting with new collaborative solutions and products, like the Group Session feature, allowing users to collaborate on playlists.
- Transparency: Spotify’s pricing model is transparent, divided into tiers like student for $5/month, individual for $10/month, duo for $12/month, and family for $15/month. 60% of users start as non-paying users.
- Fairness: The streaming platform was created to provide equal and fair opportunities for content creators to benefit from their hard work. Spotify criticized Apple’s anti-competitive behavior after the rival rolled out the Apple One package, which bundles streaming music services with other services, such as television or video games, for $15 per month—the bundle disadvantages rivals like Spotify, which charges $10 a month for streaming music only.
As a result, everything is under check and in place by management’s expectations, as these guiding principles are considered. Thus, Spotify’s management seeks to align with the company’s objectives and goals for the overall success of the vision and mission statement.
Spotify recognizes that people do best when they engage with what they admire the most.
As a result, new approaches and designs are developed through the emergence of creativity according to the organization’s core values.
In addition, the emphasis on respect and sincerity is a significant reflection of the success of Spotify, as the company promotes a culture of appropriate playfulness in its settings to avert boredom while simultaneously being interactive with everyone.
References and more information
- Heater, B. (2020, October 29). Spotify hits 320 million monthly active users | Tech Crunch
- Perez, S. (2020, November 2). Spotify will now allow artists and labels to promote tracks in your recommendations. Tech Crunch
- Solsman, J. (2020, October 29). Spotify soars to 320 million listeners, with 144 million paid members. | CNET
- Rana, A. (2020, July 21). Spotify launches a video feature for podcasts | Reuters
- Newsroom (2020, October) Company Info: Spotify
- Perez, S. (2020, May 11). Spotify officially launched a shared-queue feature called Group Session | Tech Crunch.
- Martinez, G. (2020, September 2). Twitter Might Join LinkedIn and Spotify and Start Charging for a ‘Premium’ Service | Money
- Nellis, S. (2020, September 15). Spotify criticizes the new Apple services bundle on antitrust grounds. Reuters