4 ms·

>when at Starbucks, people are ordering a coffee, not a starbucks. Except that is not true, they decieded to get their coffee at Starbucks. The Starbucks produ

>when at Starbucks, people are ordering a coffee, not a starbucks. Except that is not true, they decieded to get their coffee at Starbucks. The Starbucks product isn't coffee its "coffee distribution", Just like Spotifys product is "music distribution". Both Starbucks and Spotify provide a distribution channel to attract users, now this doesn't mean reasonable quality coffee/music isn't important to them, but thats not the whole story. So both are just like McDonalds IMHO, not different as you suggested, its just that their value adds are different.

ng12 9y ago
The more I think about it Starbucks is a weird example for him to have picked. Dunkin Donuts sells coffee, Starbucks absolutely sells Starbucks.
elago 9y ago
Maybe I'm missing your point a little, however for me today Starbucks is not like McDonalds when I was a kid. Starbucks is interchangeable with any of the many coffee chains. The service is fast, prices won't be insanely high, yet it won't be stale coffee sitting for days in a warmer. So I'll choose Starbucks over a boutique artisan coffee house and over a gas station. But Starbucks vs Other_Coffee_Chain means nothing to me. EDIT: What I mean is I don't "decide to get my coffee at Starbucks". I decide I want to go for a walk and get coffee and I'll probably stop at the closest coffee chain. Anyways, to bring this analogy back, what is the Spotify value add? The technical competence to host files on the internet? Putting a front end on CDN hosted media?
- elmalto 9y ago
  For me, it is my "adult" McDonalds. I have 5 artisan coffee shops in a two block radius yet I mostly go to starbucks 3 blocks away for a few reasons: - I can order online and have the order ready for pickup when I get there - I actually prefer their latte - They never mess it up It was similar on my last Asia trip. While I try to avoid any sort of non-local food/restaurant while traveling, I enjoy the familiarity and quality I get at Starbucks and frequent it wherever I go.
Rattled 9y ago
I'd say Starbucks business model is coffee distribution, their product is coffee, unless I have to pay an entrance fee for Starbucks. It's a good example, and the article flawed as it might be does highlight the concerns of content creators. Platforms tend to drive down the share of revenue passed on to providers and reduce their bargaining power, this is not specific to Spotify but an unfortunate reality.

ng12 9y ago

The more I think about it Starbucks is a weird example for him to have picked. Dunkin Donuts sells coffee, Starbucks absolutely sells Starbucks.

elago 9y ago

Maybe I'm missing your point a little, however for me today Starbucks is not like McDonalds when I was a kid. Starbucks is interchangeable with any of the many coffee chains. The service is fast, prices won't be insanely high, yet it won't be stale coffee sitting for days in a warmer. So I'll choose Starbucks over a boutique artisan coffee house and over a gas station. But Starbucks vs Other_Coffee_Chain means nothing to me. EDIT: What I mean is I don't "decide to get my coffee at Starbucks". I decide I want to go for a walk and get coffee and I'll probably stop at the closest coffee chain. Anyways, to bring this analogy back, what is the Spotify value add? The technical competence to host files on the internet? Putting a front end on CDN hosted media?

elmalto 9y ago
For me, it is my "adult" McDonalds. I have 5 artisan coffee shops in a two block radius yet I mostly go to starbucks 3 blocks away for a few reasons: - I can order online and have the order ready for pickup when I get there - I actually prefer their latte - They never mess it up It was similar on my last Asia trip. While I try to avoid any sort of non-local food/restaurant while traveling, I enjoy the familiarity and quality I get at Starbucks and frequent it wherever I go.

Rattled 9y ago

I'd say Starbucks business model is coffee distribution, their product is coffee, unless I have to pay an entrance fee for Starbucks. It's a good example, and the article flawed as it might be does highlight the concerns of content creators. Platforms tend to drive down the share of revenue passed on to providers and reduce their bargaining power, this is not specific to Spotify but an unfortunate reality.