Spotify aims to release music industry with free music and successfully goes public with its core competitive advantage under the uncertainty of supply and demand. This study takes Spotify as research object, describes its overall market environment with PEST, discusses its supply and demand, market structure, trade cost, as well as its risk management with a perspective of economics principles. By the change of market in these years, Spotify’s original core competitive advantage has been no longer in strength. Facing a tough situation surrounding by the uncertainty of supply and demand, continuous commercial competition, and the lack of proposing a new core competitive advantage, Spotify’s inevitable decline will be foreseeable.