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I don't understand why Spotify hasn't gone the Netflix way and started their own label to produce and release the music themselves. Their margins are severely c
by runeb 9y ago
I don't understand why Spotify hasn't gone the Netflix way and started their own label to produce and release the music themselves. Their margins are severely cut by licensing and since the labels hold the rights to the content they might be convinced to sign better deals with competitors who have other revenue streams to subsidize a music venture that isn't making money.
- hardtke 9y agoMusic is fundamentally different the video. Video is typically consumed and monetized once. A piece of music is consumed over and over again by the same individual. From an artist perspective, they want their music to be widely distributed so that they can monetize as many times as possible, and they also want to drive consumers towards their other lines of business (live performance, merchandise).
- erikrothoff 9y agoFrom what I’ve read they are trying to cut out smaller independant labels, where the budget and need for large capital injection is smaller. The long tail of music makers. From that perspective SoundCloud is probably a great hub to acquire.
- hb3b 9y agoThe statistics point towards users wanting music from the big four labels. This may be one of the reasons they have double downed recently on their discovery products. If they can continue to divert user interest to artists from less expensive labels, it's a win/win. (Former Spotify employee, have no idea what I'm talking about).
- deleted 9y ago[deleted]
- runeb 9y agoI don't think users particularly care which label an artist is on but the big labels attract the biggest artists and can back them up with marketing, so thats kind of expected. Its hard to say if the discovery products are supposed to guide users to less expensive content, but is is an interesting theory. But showing users content they might not be aware of would necessarily go beyond the big labels that are everywhere. I think it has more to do with providing value that can't escape the platform due to external factors such as a label striking a deal with a competitor.
- Kiro 9y agoIs it common to know what label an artist you listen to is on? How do you even see it without looking up the artist or song on Wikipedia?
- dummyfunnytoo 9y agoI think the point was that users implicitly want content from these labels based on the music they look for. Not that they're looking for music from those labels or are aware of which labels produce which music.
- mseebach 9y ago> The statistics point towards users wanting music from the big four labels I'm sure they pointed that way for TV content, too, when Netflix did House of Cards. I think people want music that's "well known", music their peers also know about, and that goal is aligned with the big four labels, because they have the clout/infrastructure to get a song played on the radio etc., but it's not a causal relationship. With streaming becoming ever more popular, the idea that Spotify could achieve something similar, especially if they can tap into data to predict who's likely to like a new album, isn't too farfetched.
- majormajor 9y agoBy that time, actually, the four traditional TV networks were already quite disrupted by cable networks. Netflix was following a well-established non-major-broadcast-network model (e.g. HBO, USA, FX, Showtime, etc) that had achieved a lot of prominence already. Some of the most talked-about shows in the country were only on cable.
- overcast 9y agoI can't say in my 37 years of life, that I've ever considered what label a band was on, before I listened to them. I couldn't even name four big labels. The statistics point that way, because the four biggest, have the most artists under them.
- solarkraft 9y agoThis is true. The work of labels is not hard to replicate digitally and Spotify is a valued brand already with amazing distribution built in. On the physical front however (and bands need concerts to make money) they would be disadvantaged. Seems surmountable too, though.
- asteli 9y agoLabels are a great way to find new music. Smaller ones typically have much tighter, more strongly thematic curation. Often, if I really enjoy an artist, I'll browse the rest of the labels offerings. This doesn't work for Sony BMG of course, but consider a label like Ghostly International. Come for Tycho, find Com Truise, Lord Raja, Gold Panda, Shigeto, others).
- vndrewlee 9y agoThey do have a small in-house label.
- richardwhiuk 9y agoThe problem is that then you are competing with your customers, who then won't play ball, and might start a competitor. Netflix doesn't have this problem, as a load of it's producers weren't playing ball anyway.
- EggsOnToast 9y agoIt might just be too risky in their minds. I can't speak for every user, but if Spotify dropped the big labels I'd just go elsewhere. There's already enough platforms for discovering new or different artists, Spotify's value to me is being able to pick a song or band I like on a whim and know that they'll probably be there.
- solarkraft 9y agoThis could well be what's pressing them to stay away from the label game.
- detaro 9y agoThey do that with pieces where brand/recognition isn't as important, having fairly unknown musicians make instrumental pieces for thematic playlists instead of putting artists from labels there. A lot cheaper and easier there than trying to compete for popular musicians with a major label.
- deleted 9y ago[deleted]
- fullshark 9y agoIf Spotify loses their catalog I’m not subscribing any more. I want to listen to very specific artists.