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Distribution tends to be the hardest part of any supply chain and it doesn't seem like music is any different. Spotify owns distribution and has almost no compe

Distribution tends to be the hardest part of any supply chain and it doesn't seem like music is any different. Spotify owns distribution and has almost no competitors anymore (either online or offline) and the future is very clearly streaming. So the labels will end up depending on Spotify for revenue. In 2018, streaming revenue accounted for half of all label revenue[0], and that will only increase. [0] https://mashable.com/article/major-music-labels-19-million-per-day-streaming/ https://mashable.com/article/major-music-labels-19-million-p...

Hamuko 6y ago
>Spotify owns distribution and has almost no competitors anymore According to the statistics I have, Spotify has 34% market share while Apple Music has 21%, Amazon Music has 15% and others have 30%. That's hardly "no competitors".
Orphis 6y ago
Spotify doesn't own any distribution. The labels do, and they could just not renew their contract and move to a competitor's service at a whim, destroying the company (who wants a service where 1/3 of the artists are not available?). They have the biggest share currently, but they're never safe.