The TikTok-ization of everything: now Spotify

March 15, 2023
2 minutes

Strategy | Business Models | Tech

Spotify's new design

Source: Spotify

I was discussing last week with the students about the TikTok-tification of apps: Instagram, Amazon, Netflix, Shein, Reddit, Youtube, and many others. Of course, Spotify could not miss this trend and announced yesterday their new design app

Main takeaways from the event:
1/ The user interface moved from being static to …alive and interactive
2/ By introducing separate feeds the company has more leverage to introduce more ads
3/ Like Apple, Spotify is pursuing a much more clear differentiation between the free and premium plans (e.g. the latter has AI DJ and other new features)
4/ Vertical scrolling is coming to Spotify (hint! taping is better)
5/ The audience at this event was only artists (e.g. musicians, podcasters etc). Spotify wants the platform to be the “go-to” for all artists. They can take leverage of all the analytics, all infrastructure and focus on want they want: creating stuff
6/ Finally, artists can create their own communities in the app which will nurture and eventually monetize (e.g. merch, concerts tickets etc)
7/ One of the announcements that I really like was a feature called “Clips” – which lets artists add a 30-second video. (for podcasting or audiobooks it offers also autogenerated subtitles)

Spotify wants to be a better aggregator because it will never be a super aggregator (like Google or Meta). Somehow, the music industry was not disrupted like most industries by aggregators. The labels are the real winners.

To have a zero marginal acquisition cost per user Spotify needs to come up with different services (ie. podcasts) and different ways to monetize music (ie. bidding for songs in playlists etc)

Discover posts:

Opinions on Tesla's electric cars market

Will Tesla remain dominant in the EV market?

Two thirds of the MIT Sloan Management Review Strategy Forum panelists think that Tesla’s dominance will come to an end. I agree with this conclusion, but the company will remain dominant. It’s an iPhone on wheels and last time I checked iPhones were still cool. Ivan Png from the National University (...)

Read more
the gaming ecosystem

The gaming ecosystem

Playing is innately human. I play with my 2-year-old ? , but also I play online with someone from South Africa. This is the beauty of not knowing their languages, but understanding each other perfectly. I’ve chosen gaming as a research field because it is the fastest growing form of (...)

Read more