Further problems exist with Last.fm that redirect music downloaders to various partner sites they have. Streaming of music is not the main revenue source. The revenue comes from users that go through to the Last.fm site to check out their profile and tracks. Since streaming was just a side feature and didnt really fit in with the companys business plan it was certainly an expensive feature in terms of licensing fees and cutting it seems to make a great deal of sense.
* Spotify has a problem with Apple, Apple reveals new regulations regarding app advertising and analytics. This found on the venture beat website. Device Data may not be provided or disclosed to a third party without Apple’s prior written consent" this is huge problem for the value chain for Apple users but a bigger problem for Spotify.
*Spotify is not the only game in town in the internet. They need to find a niche market find a way to work with PayPal users to secure payments for music service and expand and partner with other internet sites so that customers can be redirected back to the Spotify site.
*Spotify has many external issues that must be dealt with. According to technology research firm IDC there were 1.1 billion internet users around the world and 211 million in the U.S. at the end of 2006. Internet advertising revenues is necessary for Spotify to be strong. Revenue in 2006 was $23billion according to the 2008 internet advertising revenue Report found at www.PricewaterhouseCoopers.com.
*Spotify needs to reevaluate the competition. As broadband prices fall, ISPs are pursuing new business strategies such as bundling internet access with voice and video services. This is all due to changes in legislative requirement concerning technology sharing, patent rights, information security, future expenses and profitability of the companies operating within the internet industry and they become harder to predict. Long-term strategies regarding the internet and software services