What is music?
Technically speaking, it's a series of sounds strung together
to cause a reaction in the human mind.
But it's so much more than that.
My happiest memories always had something to do with music.
Mom dancing to Aretha Franklin in the living room.
When her favorite song was playing on the stereo.
We weren't just losers in an apartment where you could hear neighbors argue.
Suddenly, we felt free.
I remember saving up for that CD.
And it was damn expensive.
I remember the dirty look that I got at the counter
when I paid with the coins I'd been saving up.
And I remember thinking that no one should have that kind of power over music.
I knew that one day, things would be different.
Because everything would be digital.
Ladies and gentlemen... Please welcome, the founder of Spotify,
Mr. Daniel Ek!
Everyone has one of these now, so I thought you should too.
- It must have been so expensive. - No, it's all good.
- Are you sure about this? - Yeah well, open it. It has a camera, GPS...
GPS?
A digital map, so you don't get lost while walking home from the store.
Hey, come on, I'm not that old yet!
So then I have to change numbers now.
Yes. Well, not on the landline, but on that one, you do need a new number.
- Thank you, darling. It's very nice. - Of course.
No.
Have you heard from Dad?
No.
Hasse told me that you got promoted at work. That's wonderful.
I'm not gonna work at some small Swedish auction website forever.
No matter what you do, you can still try and be happy.
I've applied at other places, a job at Google.
Oh. Where's that?
California.
Are you going to move?
No, I don't know. We'll see.
Why do you save all those mum?
I just look through them and check the coupons, after that, I throw them away.
So many ads that you don't need. I mean, what a waste.
Stop trying to find problems where there aren't any.
- I'm not finding problems. - Yes you are. You're feeling
"You do not have a university degree..."
Shut up!
Good morning.
- Daniel, can you come over here? - Uhn.
Have you done something?
Yeah. I've figured out their algorithm. You'll never have to pay for ads again.
- Uhm... Daniel, Google called. - Yeah?
Yeah. They're really taking this seriously.
Tradera is the top 600 results when anyone is searching for online auctions.
You should be rejoicing.
Daniel! You are an amazing coder
but we can't have you here if you're not being a team player.
You can't just hack Google!
Daniel, get rid of that shit right now!
Daniel!
Daniel?
LAUNCH AND SELL MY OWN BUSINESS WITHIN A YEAR! WHAT?
More and more Swedes are using the service Pirate Bay
to download music for free.
But record labels warn that this is a gross violation of copyright.
They're just complaining because they're scared Pirate Bay will outcompete them.
LAUNCH AND SELL MY BUSINESS WITHIN A YEAR! WHAT?
One day everything would be digital.
It was that simple. Even Mom's coupons with five kronor discounts
that she and thousands of others collected.
All the * commercial leaflets that ended up on every doormat
and kitchen counter in the country.
How could something like that be digitalized?
Advertigo. Not a bad program.
One of the first ones that managed to tailor ads to different users.
It raised some eyebrows, but that's about it.
The Swedish online marketing giant Tradedoubler
Advertigo was spotted by two guys making a splash on the Swedish tech scene.
In just five years, Martin Lorentzon and Felix Hagnö took their company from
nothing to a dominating global force within online marketing.
Hey. Um...
Sorry. I'm meeting with Felix Hagnö and Martin Lorentzon.
Sure, let's go to the conference room. Come.
- One, five... - Follow me.
Come on.
Gonna be quieter in there, hopefully.
Come on, let's go!
- Hello. - Hi! You're the new intern.
Sit down. Well actually, Felix will be here soon.
That's something you'll learn as an intern tech entrepreneurs are never on time.
They think they own the world.
They're right, they actually do.
Like the guy we're meeting today.
Daniel Ek. He's built a genius company.
Advertigo. Online marketing.
That thing is brilliant.
The companies get ten percent of the revenue for every click to their page.
They basically read your online habits and give you the ads you want.
We've been trying to get our coders do that for years.
How does he do it?
So the plan is that we buy Advertigo
and then Ek can do whatever the hell he wants.
- Not like you and me... - Martin?
Um, this is Samir, he's going to intern here.
Daniel?
- Hi! - Sorry I'm late.
It's no problem.
- Felix. - My pleasure.
You guys have met?
- Martin Lorentzon. - Daniel.
- Um... How old are you? - 22.
Okay, so... How much are you gonna pay for my company?
fantastic. I mean, it was really damn good. Absolutely unreal.
- Thank you so much. - Sure.
So what's going on? Are you in touch with anyone from class?
Okay, but I mean it had its moments, didn't it?
Like when you hacked into the school's computer system. Remember that?
I remember. Yeah, that was actually fun.
Anyway, what a performance! you were * amazing!
Really. I always knew you were good, but this was a whole other level.
Wow. Shit!
Thank you! It's not exactly the Globe Arena, but...
Oh, it's okay, you'll get there.
Well, who knows? Actually, someone from Sony was here.
There you go. Record deal!
Dream on.
Well right now, I'd just be happy if people
stopped recording my gigs and posting them on Pirate Bay.
Next time you come to a gig, let know and I'll put you on the guest list.
Oh, thank you very much.
Double kabanos with everything, one Alpen Wurst and two chorizo. Anything else?
Yeah, fries and a vanilla shake too.
Oh! Thanks.
You don't like it?
I do. It's very nice.
I'll put it next to the new toaster you gave me,
the new tea kettle, and the new water kettle, and the new sandwich grill.
I think I get it, me buying you things must be really inconvenient.
No. I'm sorry, Daniel, it...
- It just feels a little unnecessary. - Yeah
- I was happy with the old ones, they work. - No, I get it.
Are you okay?
I'm doing great.
Are you busy at work?
Work? I stopped working, you know that. I earn my money, I'm good.
Okay, but it's not just about making money.
It's not?
So plumbers fix people's toilets because they think it's so much fun?
Plumbers help people.
I think that can feel meaningful and maybe satisfying.
Yeah.
I guess you want coffee?
Yes, please.
Maybe I should become a plumber.
Obviously with the radio, it's done as a transaction, yes?
- Yes. - But will they continue doing that?
- Yes. - Why?
The last time they shut us down, it took three days to get the site back up.
But it's only because we were drunk for two of them.
Launched as recently as 2003,
Pirate Bay has already grown to become the fifth largest site on the internet.
I mean, it's absurd.
In some way, its about making culture accessible for young people. That can't
be negative as far as I'm concerned.
It's gone from being an idea to a
I think we have to understand that this isn't something that will just go away.
It's a part of the younger generation's culture and it's going to
be difficult to deprive them of something they're
so used to. Every generation, a new technology or new idea shows up and
and fundamentally changes how we've been... We're writing history.
What do you think about the actions against Pirate Bay?
It's definitely welcome but late.
Of course it's nice that the Swedish government has finally understood that
these are not freedom fighters but common
...criminals.
There is a new world that is coming
whether the record companies want to admit it or not.
It's taken a long time to get here but I'm glad the government
has taken appropriate measures.
Come in.
- Hey! - Hey! Well, good morning?
Good to see you.
Jesus! Your apartment is sick!
Yeah, it's not bad.
So, you told me to get in touch when I had an idea.
Okay. I'm all yours.
What's the one thing Silicon Valley can't quite pull off?
Getting rich without becoming an *?
Music.
...was dismissed today but the Pirate Bay continues...
It's this Pirate Bay thing.
It's a huge mess.
Nobody wants part of this war between record companies and the new generation.
So any company that could actually capitalize on this is just backing away.
Okay, and what about this is supposed to sound promising?
There's a great opportunity here. A big hole in the market.
Since no one wants to be linked with Pirate Bay,
no one's stepping forward to create a really good music site.
That's because there already is a great music site,
it's called Pirate Bay. Everyone loves it.
But do they really love it?
Or is it just because it's the only option they have.
If you look at it carefully, you'll realize it's shit.
The listings are chaos, you can't find anything.
It takes forever to download, and when you go to play the files,
they lag half the time. It's shit!
- But it's free and free is best. - Yep. That's exactly the idea.
What's exactly the idea?
Pirate Pay lives off ads.
What's the one thing that you and I know best of all?
- Ads! - Exactly.
- Smoothie? - No, I'm good.
Okay, but you're talking about a bunch of hackers in a basement.
Obviously we can't use their business model.
Why not?
They take clicks and turn them into money.
They do exactly what we do, only they're one step ahead.
What other companies have grown 900% in three years
and have 30 million monthly views on their website?
If they can pull that off on such garbage site, imagine what we could achieve.
Think of it from a business perspective.
Someone has to and will step up and create a really good free music site
that's worth having. It's an open goal.
But what are we going to do about music rights?
- That's where the big problem is. - Well that's easy, we just buy them.
- That's all? - Yeah, that's all.
The only reason that Pirate Bay doesn't want to do that
is because they're waging their ideological World War III.
Martin, I can see it clear in front of me. I swear, this is the future.
You've already sold Tradedoubler.
What are you gonna do now? Sit in this apartment
with your millions and figure out how to get the perfect six-pack?
Or are you going to show the world that you're just getting started?
I'm in.
- Step one, I'll call investors. - No.
No offense, but if we call in a bunch of 34-year-old suits,
all we'll hear is that it's not possible. I can already tell.
This has to be something completely new, something created by my generation.
- Oops. - No, you're good.
You know what I mean. Nobody else who's old school.
Another thing we'll borrow from the Pirates,
in our company, the coders are the stars.
We'll build everything around them, and won't stifle them with administrators.
Okay. We need a list of the best. I know a bunch of guys from Tradedoubler...
No, not gonna work. This needs to be a brand new thing.
We need the coders that nobody else wants. We need the guys with the PhDs, the nerds,
who can't stand the business and hate startups. The guys
who are unable to stop talking about using semicolons in JavaScript.
- So you've got a list? - No, but I know someone who does.
Andreas Ehn. Top of his class at the Royal Institute. Wants
everyone to have access to everything. Hates the government.
I met him when I was consulting for an online site for digital dolls.
He's brilliant.
If you get in on this, you have the chance to create something that truly matters.
- Okay, and what is that? - The music site everyone is waiting for.
No downloading, no waiting, no shitty lag. Instant response.
One click and it plays. It'll be free with access for everyone.
That's why we need the very best.
- We need the team. - Definitely.
- How many do I get? - As many as you want.
Who's paying?
- This is going to be expensive uh? - It's going to be worth it.
Trust me, there's no way we can lose.
The pirates think they're the pioneers, but we know they're only halfway there.
You are the bosses. Your ideas are what drives
this forward and we'll never compromise on that.
- What's my role? - You're the chairman of the board.
The guy who's done this before, the the salesman with the contacts
and the majority owner.
I mean, I read that you sort of know the king.
And what's your role?
I am the face of the company. I'll show everyone that we are the future.
Okay. So we'll go with films and music...
Only music.
But why?
Music is personal.
It's an identity. Artists and bands are like the cool kids at school.
- That's what we're gonna be. - The cool guys at school, huh?
Music for all.
Daniel has promised us that all decisions will come from this group.
The only limits are those you set yourself.
- Get ready, we're gonna beat Pirate Bay! - Oh yeah.
- Cheers! - Cheers!
Okay guys. Now, Andreas is in charge!
So we'll make sure his life is a little difficult.
And then we're gonna build the world's greatest music player.
- And it won't * buffer! - No!
- Can we start by getting rid of that? - Absolutely.
You guys can hear him, right Andreas?
Yes. Fredrik did some research. 0.2 seconds is the magic number.
It's perceived by the brain as instantaneous.
Let's get started!
- Daniel, get in the front. - No, the coders are the stars here.
No! Come on, just take the picture!
That's great!
Are you sure this is where we get the rights to the music?
Yeah.
Do you think this is what they do with startups?
Lure them into a room and then... kill them like Luca Brasi!
Please, come in.
Thank you.
- Hi. - Good morning.
- No worries, it's fine. - Sit down. Do you want something to drink?
- Don't worry about that. - Okay.
So, guys. What can I help you with?
Well, in fact, my colleague and I started a music company.
And we just need to apply for music rights really.
And that's why I'm here.
Perfect!
So what you'll need to do is fill in these forms.
- Okay. - You can...
look through that and then fill in your estimated revenue for advertising
in your first year.
Okay.
Then all we really need is your radio license.
Mm... I'm sorry, what?
Radio license.
I mean you're applying for a license to make an online radio station, right?
Oh, okay, I get it. Well, no.
I think there's been a misunderstanding.
We actually are a streaming service.
- A streaming service? - Yes. I can see you're a little worried.
You don't have to be. We have a business model that works.
Hold on. This...
This is how it it, we're a rights organization.
We're very committed to our relationship with the music industry.
We exist to protect the music and you want to start up a streaming service?
That's something completely different. You've come to the wrong place.
Maybe I can explain it a bit more.
We are a streaming service, but we have a business model...
Everyone gets paid. There's no ownership, there's no reason...
You have to take that up with the record companies.
What for?
You'll need to convince them to give you their music.
So, take the fight to them, I can't help you.
Damn it, Daniel! She thought we were a radio station!
I looked up how to get the rights. And it should just be buying the license.
- Where did you look it up? - Google.
Goog...
Yeah, come on...
Yeah okay.
Okay, that. That was funny to you?
Yes.
You've made me back you in the music industry with ten million kronor
without you having any idea how to get music rights?
Okay.
We have to get back to the office and tell the others.
No, what for? We don't need to stress them out right now.
- They need to know what is going on. - No, what for? We're gonna get the rights.
How? The record companies have * taken Pirate Bay to court!
- Why would they wanna work with us? - We're not Pirate Bay!
- No, but we need to step up our game now. - I know.
We are so much better than this.
We go directly to the labels.
We just need to find one person who gets it. And I will find that person.
Exciting! Where will you find this person though? Google?
* off!
Spotify will lead and not follow. And it will start right away.
- I'm Daniel, nice to meet you. - Hello! Hi.
- Thank you. - Hi, nice to meet you.
And it really is a streaming service.
A free, legal streaming service on demand.
Where are we at?
- I'm working on the interface. - Okay.
Daniel, I'm curious. Have you been in contact with the record companies?
I mean, are you sure we'll get the rights?
- Oh, yeah. Don't worry about that. - You sure?
Record companies are losing five million in a week to Pirate Bay.
They all want a website that will bring them revenue.
Yes, but...
The real challenge is the technical
part. If that works, everything else will fall into place.
You can also put them in a playlist.
Alright!
Working hard, I see.
Maestro, good to see you. How did it go?
It went fine.
- Daniel? - Hey, what's up?
Welcome back. Check out the new interface!
Yeah, but it's still buffering.
But we're getting close. The magic number is 0.2 and now it's 0.4.
Okay, 0.4?
Mhm. On average it's 0.39778.
We didn't say 0.4, we said 0.2?
We said direct, seamless streaming. I don't want any * lag.
- That's two hundredths of a second. - But...
Just show it to me when it's done.
- What's going on? - You know the situation.
You've been to the meetings. 12 meetings, four countries. The result?
- Nothing. - Absolutely nothing.
Yeah, we're starting to run out of cash.
Yeah, I know.
I'm such a * idiot. At first I thought they didn't get it.
But now, I know they get it.
They just don't want to change. They don't care.
It's a Titanic, they'll keep going till the boat hits the bottom.
Okay. Listen I know you can fix this.
You sold it to me, said it was gonna be bigger than Silicon Valley.
I can put in another 10 million, but then we really have to * deliver, Daniel!
Look! You've got your team.
They're building a prototype unlike anything else.
We're so close, solve it!
But first, you need a fresh beer.
Right here with the CIO for Sony Sweden.
Mr Sundin, what is your opinion about Pirate Bay's activities in this case?
But there are other things we need to understand.
Even if no one else in the music industry wants to admit it,
we have to face the fact that things are changing.
And so, we have to find a new way forward.
No, I was actually going to call you. Is it fixed?
Please, just fix it! Internet has been down for two hours. Thanks.
- Daniel Ek? - Yes. Hi.
Hey. I got a call from the receptionist. What's up?
Well, here's the thing, I've been waiting in this lobby for three days.
I have something I want to show to Per Sundin. I know he'll like it.
- I'm really sorry, but... - I just need one meeting.
- I promise, he'll love it. - His schedule is... Sorry.
Hello. Can someone please get a hold of the IT guys?
It's the same problem again. Everyone's emails are just bouncing. Thanks.
- Sorry, I really have to... - You know, it's probably the firewall.
What?
In most cases, it's the firewall.
I could fix it in two minutes, if you want.
- Thank you. That was impressive. - Sure.
It's nothing.
Hey, here's the deal. Per is actually busy right now,
but Johnny from Digital is here and he would love to meet you.
Shit.
Yeah.
Even David Bowie said that one day the music will flow...
Do you need a break?
No, sorry. It's just that, quite frankly,
this is the fourth meeting I've had with guys like you just this week.
Guys like me?
Yeah. Tech guys who want to turn the whole industry upside down.
You think you can replace us actual people with some algorithm, right?
No. But something's gonna have to change, right? Your boss seems to realize that.
Yeah, thanks a lot. I know Sundin thinks the industry has to change,
That's also why you,
or people like you, will never get anywhere near him.
I'm going to lunch.
I'm really sorry about this.
Hey, don't worry about it.
He's had a pretty rough week. His closest colleague just got fired.
No really, it's okay. I'm used to it. How many got fired?
15, still counting. This month.
Hey, she's fantastic.
- She is, for sure. - Yeah.
You guys signed her?
- No, not yet. - For real?
- But if it were up to me, we'd do it now. - Hmm.
- I'm surprised you know about her. - Well, we went to high school together.
- I just saw her play, she's * great. - Oh, cool. I was there.
- Really? - Mhm.
Are you gonna be there tonight?
- She's playing? - Yep.
- Is that right? - Same place.
Okay. I didn't know, maybe I'll go.
It's quite possible that Per will be there too.
Oh... Okay.
- Thanks. - See you.
Andreas, we're going to a concert. Bring your laptop.
Oh, yeah. Sorry. It's been kind of crazy lately.
- Is everything okay? - Oh yeah, fine.
I'm working on something new. It's a site for free music.
Okay...
You look skeptical.
- Yeah... - Not a fan of free music?
Something like that. Yeah.
This is something new.
The artist gets paid, everyone wins. Take a look.
Spotify?
Honestly, if you ask me, it's not the people downloading that's the problem,
record labels are the real problem.
- They're living in utter denial. - Yeah, but...
You've never downloaded anything because you didn't want to pay for it?
Of course I have, but now it's completely different. I'm trying to fulfil my dreams
and prove to my mom that I'm not completely crazy for doing it.
Same with me.
You did this in high school too.
Yeah, you always managed to get people to see things from your perspective.
And you always had the best laugh.
- We're on in five. - Coming!
Okay, so...
Oh, by the way, I heard the top Sony executive is here.
- What? - Mmm-hmm.
- Are you sure? - Yup.
- Yeah! See you. - Good luck.
Daniel.
There! There he is!
Per Sundin!
- Hey. Hi. - Hi.
- If you're looking to get a record deal... - No, this is Daniel Ek.
- He's the guy who came by the other day... - I know how to save the music industry.
Okay. Alright... Good. Okay, good luck with that.
You said something needs to change, right? We have something. It's a music player.
You're planning on running a demo here on the street?
You haven't seen this kind of thing before. I promise.
It's free music on a whole new level. Quality, design, intelligence...
Wait, what did you just say?
Intelligence.
- No, you said "free music". - Yeah, but we have a business model...
What the hell makes you think that I would be interested in free music?
- I wanted to talk to you because we know... - No! Music can't be free.
- Alright, but listen... If you just... - It can't. No!
If I hear one more goddamn pitch based on free music,
I'll make it my personal mission to crush your goddamn shitty companies.
You get it? Get a real goddamn * job.
Bad timing.
Oh, * sake!
- Bad day Daniel? - You're having a good day as usual.
Absolutely. You have to see the possibilities, you know.
I see.
Have you seen the new statistics on youth consumer behavior?
No.
They get 90% of their information from the internet
and spend an average of two hours a day on it. And 40% over four hours.
Do you actually realize how much that is?
It won't be the old guys at the record companies that decide whether
Spotify gets to be something or not.
- No? - It will be their kids.
That's a good idea. Yeah, I'm impressed.
I'd love to show you something you might be very interested in.
Hello.
Take a look at this. Here's something called Spotify.
What do you think about free music?
- It's great, right? - It's really great!
- Wow! - Follow the instructions on the card.
It's really simple to use. Go on and test it out and you can show it to your family...
- Michael Jackson, The Supremes, Prince... - You can listen to
any music you want, anywhere
in the world.
Spotify, it's a new music site with all of the world's music for free.
Sounds good, right?
- Yeah. - Take some cards for family and friends.
Oh and make sure to tell your friends about it.
Hey, son.
That's not how it happened.