The Spotify effect: Why every company is now a data company

Apr07

by Sindy Cator on April 7, 2014 at 7:37 pm

Posted In: Analysis and Opinion, Around the Web, Design & Dev, Entrepreneur

Marius Moscovici is the founder and CEO of Metric Insights. After landing a $200 million credit line and acquiring music data platform The Echo Nest, Spotify is widely expected to announce its IPO in coming months. Spotify is a unique spin on the same fundamental formula that generated value for Netflix, Amazon, Groupon, Pandora and LinkedIn before it. So what exactly is this magic formula? It’s simple, really: When a company uses data to personalize its inventory, it creates a better UX. This UX in turn draws in millions of users and investment dollars. What’s the lesson startups can derive here? Value…