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The problem is that listening habits are different than viewing habits. People generally don't rewatch TV shows (with a few notable exceptions), whereas people
by toasterlovin 7y ago
The problem is that listening habits are different than viewing habits. People generally don't rewatch TV shows (with a few notable exceptions), whereas people regularly re-listen to music. This means that a back catalog is very important in music, but not as important in TV. And since the music back catalog is owned by a collection of different record labels, music services are beholden to those labels. You can create all the new music you want, but if you don't have something approaching 100% of the music from the past, then you're going to be non-viable as a product offering.
- bgilroy26 7y agoIt seems from your description that it would be possible to capture the teenage market with artists who are independent from any existing label and own the music rights and thus run a streaming service with greater than 26% gross margin.
- toasterlovin 7y agoYeah, but other labels are going to make music that teens want, so you gotta deal with them. Exclusive content would help with customer retention and acquisition, but probably not much with margins.