Spotify Catalog vs Exclusives | Product Trade-off Interview

Table of contents

Is it better for Spotify to offer a larger music catalog or focus on exclusive releases?

Strategic Thinking Data Analysis Stakeholder Management Music Streaming Digital Entertainment Tech

Music Streaming User Retention Competitive Analysis Content Strategy Product Positioning

Introduction

The trade-off between offering a larger music catalog or focusing on exclusive releases is a critical decision for Spotify's product strategy. This scenario involves balancing content breadth with unique value propositions. I'll analyze this trade-off by examining user needs, business implications, and competitive positioning.

Analysis Approach

I'll start by asking clarifying questions, then systematically evaluate the trade-off using a data-driven framework to arrive at a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

What's the current size of Spotify's music catalog compared to competitors?

Why it matters: Helps understand our competitive position
Hypothetical answer: Spotify has 70 million tracks, similar to Apple Music
Impact: If we're already competitive, exclusive content might be more valuable

What percentage of our user base listens to niche genres vs. mainstream music?

Why it matters: Indicates whether catalog size or exclusives might be more impactful
Hypothetical answer: 30% of users regularly explore niche genres
Impact: A larger catalog might be more beneficial if niche listening is significant

How have past exclusive releases performed in terms of user acquisition and retention?

Why it matters: Provides data on the effectiveness of exclusives
Hypothetical answer: Exclusives led to a 5% increase in new subscribers but minimal long-term retention
Impact: Might suggest focusing on catalog size if exclusives don't drive lasting value

What's our current budget allocation for licensing vs. creating/acquiring exclusive content?

Why it matters: Indicates resource flexibility for either strategy
Hypothetical answer: 80% licensing, 20% exclusives
Impact: Significant shift might be needed for an exclusives-focused strategy

How do our key competitors differentiate themselves in terms of catalog vs. exclusives?

Why it matters: Helps identify unique positioning opportunities
Hypothetical answer: Apple Music focuses on exclusives, Amazon on catalog size
Impact: Might influence our strategy to differentiate or compete directly

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