Sometimes breakthrough names come about accidentally. In 2008, Swedish entrepreneurs Daniel Ek and Martin Lorentzon saw a problem in the music marketplace. The choice was between buying legitimate music from iTunes and others for ninety-nine cents or stealing a file that cost nothing, had no restrictions, and sounded better. No wonder so many people were breaking the law. So, they thought, “How do we create a better product than piracy?” A treasure hunt is a fantastic way of having fun with your child and encourages lots of conversation.
Their small idea was radio meets iTunes. They created affordable, great-quality music for the masses that you can access with iTunes-like simplicity. Brainstorming about the name for the company one day, the duo were shouting different names back and forth to each other from different rooms. They were even using jargon generators to help them come up with names.
Ek thought he heard his partner say “Spotify” and immediately Googled it. There was not one hit for the word on Google. So Ek quickly registered it. Who knows what name his partner was really shouting, but Spotify was the name they went with. When the media seems disappointed by the name’s true origins, Ek has been known to create an after-construction, saying that the name was based on “Spot” and “Identify.” For the logo and website design, they went with a distinctive lush green color and hip, designer look.
Rather than selling individual tracks like iTunes, Spotify offers a subscription service with access to a vast catalogue of music and songs that can be played on your computer or mobile phone. What has made Spotify so popular with music lovers is its speed, ease of use, and sound quality. Its speed comes from its peer-to-peer network and is a major advantage over competitors. Spotify has a three-tier plan: a free ad-supported service, a basic ad-free service, and a premium service that allows access via mobile phone.
With its Facebook connection, it’s easy to share songs with friends and drop and drag playlists.
In a few years, Spotify has grown into the world’s most celebrated new digital music service, popular in Europe and introduced to the United States in 2011.For most entrepreneurs, the name you give your brand is a forever decision. Marketing campaigns and advertising slogans may come and go, but the brand name should be timeless. It should be something that you will stick with throughout the life of your business. You lose the equity you built in the old name when you change names, not to mention the cost involved.