I recently watched the 'Playlist' on NETFLIX the story the $25 Billion streaming platform SPOTIFY- Here's what i learned
I recently watched the 'Playlist' on NETFLIX the story the $25 Billion streaming platform SPOTIFY- Here's what i learned
I recently watched the Netflix series 'Playlist,' which documents the rise of the highly successful streaming platform, Spotify, and its CEO, Daniel Ek. The series provided valuable lessons and insights for entrepreneurs.
Spotify is a music streaming app and media business started in 2006 in Sweden by Daniel Ek and Martin Lorentzon. Two brilliant entrepreneurs, with a staff strength of over 4,000 people and a market capitalization of over $25 billion. This company controls over 30% of the music and podcast streaming market. The success of Spotify is a testament to the vision of Daniel Ek and Martin Lorentzon, and their success has allowed them to be a major player in the digital media market.
Without a grain of doubt in my mind, I believe we can all learn something from this company.
So what did I learn from spending my precious time watching a Netflix series about Spotify?
1. You don’t need to figure everything out before starting: He started Spotify before learning how to get music rights from record labels. Hahaha, a very bold move. If the record labels who own the artist and music don't give you the right to stream their music you'll be sued for billions. As with all exemplary entrepreneurs Daniel Ek moved before all things were set.
King Solomon said the following in Ecclesiastes 11:4 "If you wait for the right conditions, you will never be able to accomplish anything." This sums up point number one.
2. The Network Effect is an important factor to consider when running a business, and it refers to the situation in which the value of a product, service, or platform is influenced by the number of buyers you have. It is true that your phone and your service provider benefit from network effects because if other people do not have phones, your phone is useless. I would like to emphasize that the lesson learned here is that having a product and a personal brand that is widely used and distributed is to your advantage. There is a good chance that you will use a plumber because all of your apartment tenants are using him. That plumber has a network effect. I used to sell books from office to office in Port Harcourt. After a while, I noticed that I sold more books when I told new clients ''Hey, all of your colleagues bought this book''.
The third point. It's good to start with marketing activities that don't scale: Daniel Ek and the original Spotify team members visited the university campus in order to promote their music streaming services to students. It may not be scalable to make sales calls by yourself right now, but you can start making them
4. Take Design and User Experience Seriously: One of the problems with music downloading sites before Spotify was that most of them did not have a good design ethos as part of their design process. They were not beautiful to behold. Look at beautiful packaging in supermarkets for inspiration. Good design is business survival
5. User Experience: Daniel pushed his Chief Technology Officer to ensure that the speed between clicking and hearing a song was 200 milliseconds or less
6. Punch Above Your Weight: They persistently asked a top female lawyer working in the top law firm in Sweden to join their young and unknown startup. Wow! She eventually agreed but the lesson is just ASK ASK ASK. That was how i asked a man running a $100,000,000 software company in Dubai to come on my podcast and he did.
7. What you resist persists: The more record labels fought streaming companies, the bigger they grew. Sometimes what you resist grows exponentially. This is also called the Barbra Streisand Effect, which, “efforts to suppress a juicy piece of online information can backfire and make things more difficult for the would-be censor.”
I highly recommend this series to anyone interested in entrepreneurship.
Join my paid WhatsApp group for N5,000 and join me as I review this series with them via Zoom and you will also get the replay for free. Click below to pay
Video of the week: I recently interviewed Spencer Lodge who runs a $100,000,000 company in Dubai:
DEALS OF THE WEEK: @getbumpa: With this app, you won’t need a website anymore. You can do your invoices, sales, and sales in your DM using @getbumpa You will get a 20% discount. Click the link in my Instagram bio to get started
Podcast of the week: ‘How to ask better questions: Podcast
Fantastic article.