The service model canvas Service: Spotify Created by: Neil Turner Date: 15/1/15

USERS SERVICE PROPOSITION CHANNELS KEY ACTIVITIES CHALLENGES

Who are / will be the service users? Why would someone use the service? Through which channels (e.g. online, mobile, Which key activities are required to deliver the What current challenges exist?
Who are the most important users? What value does the service bring? telephone, shop) is / should the service be service? What challenges do you foresee in the future?
available? Which are the most important activities?
 Music lovers – Likely to already have a well  Ability to play (almost) any music at will. Which channels are most cost effective?  Persuading artists to buy-in to the royalty
established music collection (physical or  Access to music anywhere (e.g. home, Which channels are users like to favour?  Signing artists model
digital). Want access to lots of music and to 
work) Curating content (e.g. Playlists)  Persuading customers to upgrade from the
listen to the latest tracks. Want total  Streaming via website 
control over their music. More likely to  Discover great music Blogging free service, to the premium service
 Mobile app 
listen to their music than the radio.  No longer have to carry music collection Promoting Spotify (e.g. music festivals, music  Changing in-grained music listening habits
 Desktop app websites)
 with you (e.g. physical CDs, MP3s). (e.g. radio, buying albums)
Music likers – Not as fanatical about their  Apps likely to provide best user experience, 
music but still plays an important part of  Find out what others are listening to. Updating website and app  Differentiating from other similar music
but require initial download overhead. 
their life. Might not have an established  Find out what the latest music is. Resolving support issues streaming services (e.g. napster)
music collection and more likely to listen to  Show off your great music taste to friends.  Technology not ready yet for all users (e.g.
the radio than their own music.  Create shared listening experiences (e.g. Broadband connection)
 Music rarelys – Rarely actively listens to playlist).  Music labels / Artists pulling music
music (it might be on in the background)  Create anywhere playlists.  Undercut by competition (e.g. subscription
and wouldn’t consider themselves a music  Run out of space on your phone / MP3 price)
lover. Will occasionally seek out music e.g.
dinner party background music. player? Never have to worry about
available space again.
 Music likers likely to be the larger group
but music lovers more important as likely
to be early adopters and trend setters.

ACTORS USAGE COMPETITORS KEY RESOURCES COSTS

How should / do users use the service? What other similar services are available? Which key resources are / will be required to What costs are involved delivering the service?
Who is / will be involved in delivering the service? deliver the service? (physical, technology, people
Who are / will be the key partners, suppliers and How frequently is / will the service be used? Who are the key competitors? etc.) What is the most cost effective way to deliver the
stakeholders? What other options do users have? service?
 Self-service (inc. resolving problems)  Website  Music royalty payments
 Support staff (e.g. customer service)  
 Balanced usage (to avoid peaks of demand) Other streaming services e.g. Amazon Prime Mobile app  Infrastructure costs (e.g. web servers)
 Artists music, napster  
 Share and recommend service to friends Desktop app Product development costs (e.g. website,
 Music labels and family  Digital downloads e.g. iTunes, Google play  Content delivery infrastructure (e.g. web apps)
 Music bloggers and journalists  Create playlists  Illegal download sites e.g. BitTorrent servers)  Support costs (e.g. help)
 Media (e.g. Radio, music TV channels)  Download apps (e.g. mobile)  Physical music e.g. CDs  Product development team  Customer self service (to reduce support
 Seek out recommendations and new music  Radio  Marketing team costs)
 Music TV channels  Customer support team
 Daily usage for power users
 A few times a week for regular users
 Monthly, or less for infrequent users
 Very long user life cycle (if the service
continues to deliver and benefits outweigh
the costs)

ROI KPIS
How will the service deliver a return on investment? Which KPIs are / can be used to track the performance of the service?
What are the key KPIs?
 Customers upgrading to premium subscriptions  Number of subscriptions  Customer satisfaction (e.g. Net
 Advertising revenue stream (free subscription only)  % of premium subscriptions promoter score)
 Partners (e.g. music labels) paying to be featured  Song plays  App purchases
 App purchase royalties  Frequency of use  Email subscriptions
 Shares (e.g. playlists)  Music discovery usage (e.g. Radio,
 Number of available songs / artists Discover feature)

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