Spotify Pestle Analysis 2018

By: Patricia Nanjekhe

Spotify Technology S.A is a music streaming service mainly operating in North America, Europe, Latin America, among others. It offers both premium (for subscription) and ad-supported (free) versions of its streaming service. The music streaming industry market is highly oligopolistic with major players Spotify, Apple Music, and Amazon prime music having over 120million in number of combined subscribers in 2018. However, various macro factors are currently impacting the growth of Spotify. Using a PESTLE analysis, we describe how certain external environmental factors such as President Trump’s Music Modernization Act, the ‘Netflix tax’, changing demographics, or new technological developments such as the rise of smart speakers, are affecting Spotify growth.

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