Digital Disruption in the Music Industry: A Case Study of Spotify's Business Model and Market Influence

This paper examines the transformative impact of Spotify on the global music industry, focusing on how streaming has reshaped consumer behavior, revenue models, and the industry’s response to digital disruption. Drawing on data from international music and governance databases, the study analyzes Spotify’s rapid growth, its role in reducing music piracy, and the economic implications of its subscription-based model. The research highlights how Spotify’s technologically driven platform strategy has expanded global access to music while raising concerns regarding artist compensation and market concentration. Overall, the findings demonstrate that Spotify has fundamentally altered the structure, economics, and governance of modern music distribution, marking a critical shift in the digital evolution of the entertainment sector.