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Can it be a problem for Spotify that it will be hard for them to increase the revenue they extract even from the most loyal customers? If streaming music become
by jpalomaki 9y ago
Can it be a problem for Spotify that it will be hard for them to increase the revenue they extract even from the most loyal customers? If streaming music becomes a commodity and price sensitive people switch to competing services what will happen? Some companies like Apple are in nice position, because they can just sell more stuff to the loyal customers. Phone, pad and watch instead of just phone. And then more expensive variants of these.
Is there something Spotify could do to differentiate, something that matters even for those who don't value the sophisticated playlists? Should they go the Netflix route and start producing their own music? Or would it make sense to produce some other audio content? Think programs like "Serial" [1]. Or maybe some radio drama [2]?
[1] https://serialpodcast.org/ https://serialpodcast.org/
[2] https://en.wikipedia.org/wiki/Radio_drama https://en.wikipedia.org/wiki/Radio_drama
- whatok 9y agoStreaming music kind of already is a commodity and the main thing that keeps users tethered to a service are playlists. I'm sure Spotify could eventually raise prices a bit but obviously only so much. I think their biggest threat would be Amazon getting their music service in order and baking the current paid version into the cost of a Prime membership.