Spotify and Network Effects
This argument for what makes Spotify the best music streaming platform demonstrates the knowledge and use of network effects that the app takes advantage of. In class we discussed the power of network effects when it comes to people using a new behavior, using new technology, or listening to a new song. We learned about how the decisions of those around us can greatly influence what we do and don’t do. Additionally, as the number of people around you adopting the behavior increases, so do your own chances of adopting it. This article argues that Spotify is the best music streaming platform because they take what we learned about network effects and create a social media network designed to make these effects even more impactful.
They argue Spotify pioneered the concept of a social media network within a music streaming service. What makes this so effective is that it gives the network effect another medium through which to spread music besides sharing it with a friend in person. It gives every Spotify user, even those using it for free, the ability to have their favorite songs and playlist listed at the top of their profile. This makes the network effect even more effective because whenever you friend someone on the platform you can instantly see all of their favorite music. In making everyone’s friend’s favorite music very public and visible, Spotify essentially creates a visible network effect where people can be influenced by their friends music. They even took this a step further and made it even more effective by integrating Spotify into other social media platforms. This means even if you’re looking at someone’s Instagram or twitter, you can still be linked to their Spotify and see what music they listen to. Spotify has demonstrated that their knowledge of network effects has led them to be able to create their own ways to take advantage of and improve this effect.
https://www.parlia.com/a/network-effects