Disruption of the Record Industry and benefits of Digital Marketing.



This year I’m attending Hyper Island in Stockholm, learning how the future of online sales is transforming the world. Why services like Spotify and Soundcloud are creating a new type of businesses and changing our musical behavior. Creating a new way for digital marketing. We can now spread our music easier than before and more efficient then ever.

What did Spotify actually do to the record industry? To answer that we have to understand the behavior of us buying music in the old days.


  1. We did research. Visited physical record stores, listened to tons of music for hours. We read music magazines, we got tips from our friends, heard tunes on the radio, in clubs and on the street.
  2. We hade to make a selection. I always found 10-15 records that I wanted to buy but my wallet told me something totally different……
  3. We hade to acquire these records and I would rarely find them all in one store.
  4. We hade to have something to play the records on, cd/vinyl-player, an amplifier and the most important and most expensive was the speakers.
  5. We hade to manage all the music we got. Sorting them in different orders, alphabetical or by genre. I liked the genre way so it was easy to find what I wanted to listen to.
  6. We listen to the music, creating an environment we wanted to have according to the mood we were in.
  7. We hade to store it somehow. For me this was a big challenge, I wanted to have all my music in one place so it was easy to find whatever I was looking for whenever I wanted to.
  8. Then we wanted to maybe share all that awesome music with our friends.
  9. We traded it for new music
  10. We hade to maintain the collection in a nice way. For instance vinyl needed new plastic folders to increase its life length.

Then the journey from the research to listen was really long. I enjoyed it a lot and I kind of miss it today. The hunt for the new sounds, the glory and excitement when finding that record that no one else was playing.

So what Spotify did was taking all of these steps in to one place.

  • You can do your research.
  • But don’t have to do a selection
  • You can find (almost) all the music in one place
  • Don’t really have to have any extra equipment but your computer or smartphone.
  • It’s easy to manage your library.
  • You can listen to your music anywhere and at any time.
  • You don’t have a storage problem, since the music is in the cloud and not on your device.
  • You can share it really easy with your friends.

The record industry didn’t think of this or they were to naive to realize it, they where making to much money on their old way of doing business. Selling physical records. And that is what made them fall.

Spotify is cutting off all “waste time” in our musical environment and putting in more value for the user.

And what they do but most of us don’t think of, is that they lock us in. But not in a legal agreement but allowing us as users to customize the platform for our needs so that we don’t want to go anywhere else. It’s brilliant!

And I think that this is only the beginning, they are not even a profitable business yet. What will happen when they are? They will have so much data about our music behavior. And the amount of services coming out from that will be endless. They are making a sustainable business, which will live until someone makes a better platform.

So what do we think of this?!

//Jesper Aubin

And here is another great article on digital marketing.

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About Jesper Aubin:

Dj, producer & e-Commer. Malmö, Sweden.