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Background


Early life and education
Daniel grew up in Swedish city of Stockholm, in the neighborhood of Ragsved. While spending most of the time in front of their family computer, he became passionate about web design and hosting. As a young tech-whizz, who strove to found his own company then, tried to convince his mathematically gifted classmates to stay after school to teach them coding and graphics design, so that he could utilize their technical skills to pursue his business idea. At the age of 13, he started a web design business out of his parents home, which within a year, charged up to $5000 per web site. In the same year, he founded the advertisement technology startup, Advertigo. Soon after the acquisition by Tradedoubler, he and his colleague in Tradedoubler, Martin Lorentzon left the Tradedoubler to focus on music streaming platform Spotify. In 2008, Spotify launched its operation.

Values
Daniel observed that internet users had to rely on online music libraries for their purchase. However, low quality and comparatively high price tag for these content meant that a huge number of users would rather download their favorite tracks from illegal websites. He found his niche, and decided to build an online music streaming platform that can provide legitimate music to audiences at almost no cost by taking advantage of online advertisements. As of 2017, Spotify has proved to be one of the largest musical content provider, and has over 140 million active users.

Advertigo

When Daniel was 14 years old, he founded this online advertisement technology startup named, Advertigo. Unlike other contemporary companies, Advertigo offered pay-per- call and contextual advertising. Moreover, Advertigo was able to customize its landing page based on the theme of different websites, through which it was running.

MVP - 1997
( 9 years before the Spotify, founder was 14 years old)

Customer problem
Lack of contextual advertisement portals meant less sales per advertisements. Customers need more efficient and safer platform which can implement newer advertisement models; landing pages needed to be more adaptable with different consumer choices.

Customer segmentation
Advertigo was made available only in Sweden

Value proposition
More secured and custom ad through cutting edge technologies would maximize marketing.

Customer discovery
In 2006, Daniel decided to sell Adverigo to the digital marketing giant Tradedoubler, which decided to operate under the already existing model. After the acquisition, Daniel also worked as a CEO of uTorrent, a file sharing website.

Spotify
In 2006, Daniel along with Martin Lorentzon, a co-founder of Tradedoubler, found Spotify in Stockholm, Sweden. However, along with its expansion in Europe,in 2010, Spotify moved its headquarter from Stockholm to London, UK. While the Swedish office were still in charge of the research and development, due to music copyright concerns among the major music studios within Europe and the USA, Spotify's service were only available in France, Spain, the Netherlands, Norway, Sweden, Finland and the UK. However, despite its early difficulties with the recording industries, it successfully negotiated with European as well as American content providers.

MVP- October 7,2008

(two years since the start of Spotify, Daniel is 25)

Customer problem
Pricing for the digital music in i-tunes and other media libraries were not affordable for many. Significant number of population opted for file sharing sites like Napster in order to download pirated copies, as result. Daniel realized that he had a solution which he thought not only could offer audiences high quality music, but also secure the profitability of the music producers and artists.

Customer segmentation
Spotify made its free subscriptions available as invitation only, whereas paid subscriptions could be purchased by anyone who wants.

Value proposition
Daniel and Martin realized that people wanted a musical platform which can perform as both media player as well as a streamer with huge collection of tracks, which can be accessed at a reasonable price.

Leap to faith
Decision was made to make the Spotify available at free and paid versions. There will be ad content and some limitation, such as the number of song which can be played in a day, allowed number of songs which can be skipped through, etc. However, free users will always be allowed to upgrade to paid versions. Paid subscription, on the other hand, would be ad free.

Customer discovery
Spotify reports $4.4 million in losses.

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Spotify in 2008





MVP- February 2009
(Three years since the start of Spotify, Daniel is 26)
The company decided to make the free subscription open to all in the UK.In the meantime, Spotify were made available for iOS and Android. Availability in mobile devices boosted the number of free subscribers. Daniel decided to put back the initial restrictions on the free version. Since invitation only free subscriptions can be circulated though friends or relatives, the company later decides to introduce time limit based premium accounts, such as 1, 3 , or 12 months during holiday season.