SPOTIFY: $55 BILLION BY 2020 13 THOUGHTS ON The Future One of Spotify’s main issues revolves around the user experience when shifting between different environments e.g. when a user leaves their apartment and enters a taxi. This will become a challenge for the firm as partnerships increase, Spotify is used more dynamically and there is significant development potential for multi-case usage. This can further be combined with creating a more collaborative and adapted experience for the user in where Spotify adapts to the mood the user is in or what they are doing. It is key that Spotify focus on the above- mentioned areas to further improve the overall user experience. Furthermore, as the industry may adopt more voice dominated input / output and an improved user experiences – there will be both advantages and challenges awaiting Spotify. One advantage is that Spotify will be an independent software company thus being able to independently supply speaker manufacturers with software. This is exemplified by the recent events in which Microsoft chose to retire Groove Music Pass and instead partner with Spotify. On the other hand, a potential challenge with this move is that Spotify’s advantage over competitors within UI/UX will cease to exist because the landscape will get a complete overhaul. As Spotify to our knowledge does not have any hardware in the pipeline they should view Apple’s HomePod as a serious threat. Partnerships with HD speaker manufacturers like Bose and Sonos is however one step that could make sense as briefly touched upon above. Furthermore, Spotify does not have a ready to use voice assistant like Siri and Alexa. Both points mentioned above could in turn require significant investment in both capital and time to properly address the challenges faced ahead.

GP Bullhound Spotify Update October 2017 - Page 13 GP Bullhound Spotify Update October 2017 Page 12 Page 14