The gives access to everyone. The free versions

The Sharing Economy is growing rapidly. With it’s growth it also gave birth to another form of the Sharing Economy; the Subscription Economy. The Subscription Economy shows a rapid change in our consumption and cultural habits.( netflix vs uber ).  “It’s about a move from ownership to access, from transactional to relational.” ( Baxter ) PwC states that in 2000 the subscription economy generated about 200bn in 2000, and is now currently worth more than 400bn. ( December 29, 2016.)Spotify being the pioneer of the subscription economy ( netflix vs uber ) in the music industry currently has 140 million active users and 70 million subscribing users and is available in 61 countries (spotify 2017). The in 2006 by Daniel Ek and  Martin Lorentzon established Swedish company ( NYT spotify growth/losses ) is a digital music streaming service that gives access to millions of songs and podcasts from artists. Connecting thousands of artists with millions of Spotify users. They get connected through an either web-based or downloadable application, which is readily available on all platforms for computers, handheld devices and even on gaming systems. Creating an ‘on-demand’ business model.( share vs subs ) The freemium business model gives access to everyone. The free versions still includes the whole database but has certain restrictions. The premium version which costs 9.99 per months removes the advertisements and makes it possible to download to music to listen to it ‘offline’. Spotify also allows you to make custom playlists which you can share on social media and to which you can only listen with Spotify, creating a social network based around its own service. Also new artists can promote their work on Spotify, helping smaller artists to break through. ( what is spotify and how does it work ) The service pays about 70% of their income back in royalties. This is payed to the owners of the music which could be the artists, but most of the time the record label behind the artists owns the rights. The rate of return to the owners is a pre-negotiated rate per everytime the song gets streamed. Which averages to about $0,004 per stream.’With Spotify, it’s easy to find the right music for every moment – on your phone, your computer, your tablet and more.There are millions of tracks on Spotify. So whether you’re working out, partying or relaxing, the right music is always at your fingertips. Choose what you want to listen to, or let Spotify surprise you.You can also browse through the music collections of friends, artists and celebrities, or create a radio station and just sit back.’ Soundtrack your life with Spotify. Subscribe or listen for free. (Spotify, About, 2017)Spotify provides millions of songs to millions of people, millions of people share the costs of the licensing of millions of songs. Making tons of music available to everyone not needing anyone to spend more than 9.99 a month for music. (Spotify)’Since it began its service in 2008, and arrived in the United States in 2011, Spotify has grown extremely fast, becoming a household name among young people.’  ( NYT spotify growing ). Being the biggest streaming service in the world you could call Spotify an enormous success. Nevertheless the company is suffering huge losses. In 2016 Spotify’s net losses totalled 600 million, the biggest expenses being the licensing rights. (NYT) Trying to combat these losses Spotify hopes to go public soon. Spotify being able to overcome the large amount of other streaming services in this industry that could form a big part of the future could be called successful. Spotify fits perfectly in the shift from ownership to access. When using Spotify you do not own any music, instead you share the licensing costs with all the users. This way everyone has more access to more music, making listening to music cheaper, thus Spotify contributes to the sharing economy. (sharing to sub ) There was a fight going on between consumers and the music industry and up until Spotify the consumers have always been ahead of the music industry. When a majority of customers decided the join file-sharing side with services like BitTorrent and Piratebay the music industry was suddenly in major trouble. The consumer did not want Napster, a predecessor of Spotify, they wanted free music. According to Bob Lefsetz, Spotify managed to finally win the race against the consumers. The first one to finally be ahead of consumers, by creating a product that solves all of the customers current and future problems they did not even think about yet. And with this saving the music business continuity. (Lefsetz, Bob. Variety; New York, N. Y. Vol. 326, Iss. 5,  (Dec 2, 2014): 22.) Artists praise Spotify for being able to conquer piracy with a legal alternative. And delivering valuable data on the amount of ‘streams’ and information about their listeners. (Swanson, KateAuthor Information. MEIEA Journal; Nashville, TN Vol. 13, Iss. 1,  (2013): 207-230.)In the current situation where increasingly products get rented via services like Airbnb and Uber, Spotify is the perfect service to make the sharing economy stronger. (Lefsetz, Bob. Variety; New York, N. Y. Vol. 326, Iss. 5,  (Dec 2, 2014): 22.) Being a window to the future of the music business. On the other hand some prominent artists like Taylor Swift and The Black keys are rebelling against the streaming service. Saying that they not receive enough money from the stream and that the music stream service is destroying their album sales. Even withholding their music from the service to show their dissatisfaction. Artists worry that Spotify’s incentives are misdirected. Instead of trying to improve the music industry and supporting artists careers, they are mainly focussing on building a successful, lasting business. Especially smaller artists do not benefit from Spotify too much. Swanson, KateAuthor Information MEIEA Journal; Nashville, TN Vol. 13, Iss. 1,  (2013): 207-230. Spotify’s biggest concern has always been lawfully aquiciring the licenses to use the songs of the artists. And even though Spotify has done this rightfully most of the times there have been a few cases where they did mistakes. A recent case is the $1.6 billion copyright lawsuit spotify has been hit with. Wixen Music Publishing inc sued Spotify for allegedly using thousands of song without having been able to get a direct or compulsory license from Wixen to do so. And this has not been the first case of Spotify facing a copyright lawsuit. In may Spotify paid more than $43 million to settle a lawsuit after they failed to pay royalties to artists after using the songs on the platform. ( Reuters Staff, 2017 )