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Are the subscription models by these streaming services really sustainable? It seems like the licensing agreements were made before the real value of the conten
by Unkechaug 10y ago
Are the subscription models by these streaming services really sustainable? It seems like the licensing agreements were made before the real value of the content, enabling generous promotions and even a free model. I imagine the reduction of costs brought about by digital distribution back when iTunes first launched made it a much more viable option, but now that those savings are baked into the modern music industry how much lower can prices get before it's unprofitable?
- resharker 10y agoNot particularly when you consider that Spotify's contracts with content providers obligate a 70% cut. The skunkworks projects to capitalize on data/ads/listening behavior/etc. have not cumulated into considerable value for the company. The focus for the company has been and always will be GROWTH in the form of monthly active users. Streaming music will never be a cash cow. The margins aren't there.