leader as it was one of the first companies to offer unlimited music rather

Leader as it was one of the first companies to offer

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leader as it was one of the first companies to offer unlimited music rather than pay per song gaining them majority of the market. Since they started, they have always had a competitive edge over other companies as they were the market leader and their name are associated in consumers’ minds with music streaming services. Spotify also use individualization and personalization within its product, it offers discover weekly playlist for subscribers where they make a playlist based on the individual person’s music taste. Personalization can lead to greater customer satisfaction as well as higher profits due to higher customer expenditure (Arora, et al., 2008) and therefore gives Spotify a competitive edge. Spotify ’s service can also be linked to social media such as Facebook, Twitter, and Snapchat, it allows users to share their music with friends. This
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4 gives Spotify a competitive edge as it allows users to interact with friends and family making the experience personal. On the other hand, JOOX is one of these growing entertainment apps that connects music lovers to their favorite artists and albums. Available as an app accessible from mobile and desktop, the platform is a freemium service with a library of about 30m songs that are free, some songs are only available for premium users. There is a wide range of songs available across different languages to cater to the local market, apart from English songs. From millennials to business professionals, JOOX users are music-savvy, with varied interests including art, travel and leisure and sports. Beyond music, JOOX is also an engaging platform that connects brands with its diverse audience. With traditional advertisement like banner ads, audio ads and splash ads, JOOX also provides a unique opportunity for marketers to demonstrate their brands’ character through category playlists and in-app skins. (Staff Writer, 2016) 2.2 Price Spotify has different options for price, they have a free subscription that limits what the user can do as well as ads between songs or you are able to pay a monthly fee that allows you to use the service ad free as well as access to additional features such as downloading, and skipping unlimited songs (Spotify, 2020) . Spotify uses a freemium pricing strategy which entails offering customers are free sample (Liu, Au, & Choi, 2014) however there is no limit to the free sample unlike others who use this strategy users can continue the free service for as long as they want. Spotify uses this strategy to compete in the market as it knows users are not willing to pay high prices, instead they use this strategy to attract users to then purchase a monthly subscription to gain access to more features. This strategy can also encourage people who would not normally purchase streaming service subscription to do so. The pricing strategies of Spotify allows it to compete with both free and paid to use services as it is up to the customer to decided what service they will like. Spotify also offers introductory prices an example is 3 months for 99 cents after the 3 months they then charge the regular price. Spotify also offers different prices for different segments such as families, and
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