Spotify’s recent press event was interesting for a number of reasons. Not only did it indicate the direction in which the company was going. It also highlighted a number of product releases which sparked varying reactions from the media.

Content — they’ve confirmed that they will be including video, podcasts and news into their products. This is mostly what the press focused on (here, here and here). Running — they have developed technology that recognises your tempo while running and matches the song choice with that. This was mentioned only as a footnote in most reports. Relevance — they are trying to improve the user experience on their products by better understanding a user and serving up the right content at the right time. This feature didn’t elicit much of a reaction either.

By focusing on whether Spotify may have become a label or how Spotify may be competing against YouTube or why additional content might not be the right fit for a music service, the media managed to overlook the huge potential of the Running and Relevance features. It’s easier to compare existing offerings in a marketplace than it is to think about how a new product will be received by a market. This post will examine how context is going to impact the future of music discovery and consumption.

“Music is moving away from genres — People don’t search for Hip Hop or Country anymore, but rather they search around activities or a particular experience.” — Daniel Ek

At Soundwave, we echo this and believe that the future market leader in digital music will be defined by its (1) songs (2) sound and (3) sequencing.

Songs — The race for content is over. The best services have extensive catalogues that can satisfy the modern music listener with every conceivable genre and sub-genre.

Sound — The quality of digital files are now subject to the laws of diminishing returns. Only the most demanding audiophiles are willing to pay a premium for better sound.

Sequencing — The winner of the digital music space will be the platform that can provide the best sequencing of music to match a listener’s preference and desired experience. This requires a maniacal focus that starts from the ground-up with a user centric approach.