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Both Spotify and Pandora are losing money on a consistent basis. IMO streaming music is a losing business, and the only way a provider is going to stay in the
by Splines 11y ago
Both Spotify and Pandora are losing money on a consistent basis. IMO streaming music is a losing business, and the only way a provider is going to stay in the market is because they have other services that complement the music.
I love Spotify and am a daily user but honestly it's going to take a lot of work to turn things around for them.
Content acquisition costs are killer and are not something that can go away.
- jeffdavis 11y agoI thought the exact same thing about Netflix. What I missed was actually quite obvious: there are already companies making a lot of money in content delivery (e.g. Comcast). I don't know whether that will carry over to music quite as well though.
- joshdickson 11y agoMusic is different in that a number of folks (Spotify, Apple, Google, now SoundCloud, etc) are all licensing most of the same music from the same distributors for similar prices. Sure, there are some exclusives on particular platforms, but it's mostly the same music. All there is to Spotify is the UX. Video is different. Most content companies have bid out their back catalogues to one exclusive provider, or creating additional premium content (think House of Cards). In video it's all about premium exclusive content. In music there is some of that, but it's mostly all the same.