Sharing is a phenomenon that has always been apart of human nature and our society. Yet, it wasn’t until the rise of the Internet that the ‘sharing economy,’ was created, (Belk, 2014). The Sharing Economy is an economic system whereby assets or services are shared between individuals online.  It is a collaborative form of consumption and is constantly growing in today’s society.

 

Traditionally, consumers typically only shared things with those that they trusted such as family, friends and neighbours and did not share with strangers or those outside their social circles, (Frenken & Schor, 2017). Yet the development of Web 2.0 has begun a new way of sharing. Today’s sharing platforms online facilitate sharing among strangers. These sharing platforms allow for collaboration and facilitation effectively online.  

 

Due to Web 2.0, there are ranges of business models that use the ideas of collaborative consumption, co-production and consumer participation to their advantage (Belk, 2014). The Internet, and more importantly Web 2.0, has brought new ways of sharing and facilitating online, beginning with the rise of Napster in 1999. Created by Shawn Fanning, Napster changed the way consumers could absorb music online. While it wasn’t the first online digital file-sharing site, it was by far the easiest. Within the first few months of its launch, Napster had drawn over 50 million users (Kot, 2009). It offered users the chance to download music freely through an interactive model. While this new development in file sharing was impressive, it triggered a rupture in the music industry and caused music and film industries to lose considerable sales of their products (Belk, 2014). Napster was subsequently shut down in 2001 after massive pressure of lawsuits from music labels.

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While Napster’s reign was short lived, it did prompt the music business to adapt to this new wave of digital consumption, (Freedman, 2003) With advances in Internet and digital technologies, consumers keep boosting and switching traditional media consumption with digital media. This file sharing service that Napster created highlighted a massive gap in digital music consumption that music labels were missing and forced them to adapt to this new age technology.

 

In 2003, Apple created the first effective online music library, (Wikström & DeFillippi, 2016) which allowed consumers to access music from a range of artists effectively online. The establishment of the iTunes store undoubtedly had consequences on the industry, and essentially paved the way for it going forward. In recent years, the iTunes store has seen a decline in sales and a new distribution model is taking its place.

 

Subscription services are the new wave of music consumption online, which allows for sharing and collaboration online. Spotify allows users accounts to be easily linked to their social media accounts such as Facebook, Instagram, Facebook Messenger, Twitter and so on. This function allows users to share what they are listening to, to their friends and followers on social media. This peer-to-peer exchange between users is an example of the sharing economy and its impact in consumers everyday lives.

 

Spotify also offers users the option to create collaborative playlists with other users. By simply sharing a playlist with another user, both users have the option to edit, add and remove songs from the playlist. This is a unique and interactive way to create a connection between users. It shows just how this collaborative and co-producing feature shows how to sharing economy is facilitated online.

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The spreadability that occurs on Web 2.0 sites such as Spotify is evident. The wide distribution and circulation that can occur within the site is undeniable and gives users the opportunity to share what they are listening whenever they please. This collaborative consumption is a part of the sharing economy, and the sharing economy is a huge part of our economic landscape.

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There is a strong historical and global connection between the rise of peer-to-peer platforms and a widespread feeling that the new technology-enabled practices these platforms allow for the empowerment of people online, (Frenken & Schor, 2017). The Internet gives you many ways to express your identity online. It allows for collaborative consumption and co-production between users on the web and this consumer participation online has created a space for users to share content. This content can be shared and accessed by anyone with an Internet connection, making the Spotify a prime example of the sharing economy online.

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