5 ms·

The Major Labels Are Trying to Sell Spotify for $10 Billion, Sources Say

29 points by balbaugh 12y ago

gtCameron 12y ago
Replace "labels" with "networks," and "Spotify" with "Hulu," and we've read this story 100 times. It hasn't really ever worked out for them.
dageshi 12y ago
Can anyone think of a company with deep enough pockets to afford $10b that would actually want Spotify? Because there doesn't seem to be an obvious fit to me.
- lsh123 12y ago
  Amazon just launched their own music service. I can easily see someone like Microsoft trying to jump in and buy Spotify to create their own version.
  - bicknergseng 12y ago
    They have had their own version for years in http://www.xbox.com/music http://www.xbox.com/music.
    - freehunter 12y ago
      In fact, Microsoft was one of the first major players in the streaming subscription market. Before Google Play Music Pass, before Spotify, there was the Zune Pass. It was a sweeter deal back then, $10/mo for all you can eat and you got $10 in credit for songs every month that you could keep even after you cancelled your subscription. Basically pre-pay for 10 songs every month and you get the entire streaming catalog. Rhapsody was the only competitor at the time that I knew of. The Zune Pass service didn't really catch on because, well... you needed a Zune.
      - zequel 12y ago
        $14.99/mo, though at one time I was offered $100/year, should gave grabbed it. The credit plan was discontinued and only the $10/mo for streaming/no credits is currently offered as an xbox music pass. I was grandfathered in and still receive the monthly credits to this day. Usually it's a scramble at the end of the month to use the credits since they don't roll over. Overall, it's a good deal though. Bit clunky though since you can stream music using the latest clients (HTML, xbox, ios) but must use old Zune software to purchase it.
    - pavlov 12y ago
      That doesn't seem to usually stop Microsoft from making an acquisition, though. They seem happy to pay for a brand even when merging it into their palette will be a major technical or bureaucratical headache. They had in-house versions of everything Skype offers, yet they spent $8.5 billion on Skype. They had an in-house hardware team, yet they spent $7.2 billion on Nokia Mobile Devices. If I had to guess, Microsoft is probably considering a Spotify purchase. The Xbox brand is ailing recently, and they must be getting a bit scared.
  - tkmcc 12y ago
    Microsoft already has their own version: http://www.xbox.com/en-US/music/music-pass http://www.xbox.com/en-US/music/music-pass
    - lsh123 12y ago
      I guess it shows that I don't have xbox :)
- tehwebguy 12y ago
  Apple? They have the cash and iTunes sales are on the decline.
  - balbaugh 12y ago
    Apple just recently purchased a streaming music service called Beats.
- justincormack 12y ago
  Google?
  - freehunter 12y ago
    Google already has Google Play Music All Access Pass Super Long Microsoft-Style Name that's a halfway decent service.
    - hobofan 12y ago
      In my experience All Access is a much better service than Spotify. No unnecessary playlists, I just add the album I want to my library where it sits next to all the other music I already owned before. Also no buggy mobile client that forces me to redownload the entire library after every update /rant
- balbaugh 12y ago
  The article mentions various large telcom and mobile companies like Orange and Verizon but I find it hard to see such a thing as a good fit.
- balbaugh 12y ago
  A new post on digitalmusicnews.com points to Microsoft, Google, and Amazon. "Now, according to more sources talking to Digital Music News, Microsoft, Google and ‘possibly Amazon’ are all entertaining the idea of buying Spotify, though $10 billion could be considered an aggressive ask."[1] [1] http://www.digitalmusicnews.com/permalink/2014/06/12/microsoft-google-amazon-entertaining-10-billion-spotify-purchase http://www.digitalmusicnews.com/permalink/2014/06/12/microso...
d0mme 12y ago
Spotify will just be pure shit after that when it comes true. Flooding people with unnecessary ads and pushing their own artists, will fail this app. My cancellation of subscription and removal of this app as well.
mullingitover 12y ago
Pretty sure the labels are giving Spotify sweetheart licensing deals right now to boost a business in which they're a stakeholder, but once they're not invested in the business they have every incentive to put the screws to the new owner by jacking up licensing fees. I've heard that Hulu is the same kind of deal.
- whoismua 12y ago
  The new owners could the rights in writing and for x years.
- x0x0 12y ago
  Google offered perhaps $4B for hulu, predicated on long term, and perhaps exclusive, licensing [1] (this doesn't mention a price; I seem to remember reading it at the time but can't find a link). The content owners said no, which gives away the whole game -- wait a couple years, then take the screws to the owners for licensing deals. [1] http://allthingsd.com/20110906/google-goes-big-with-its-hulu-bid/ http://allthingsd.com/20110906/google-goes-big-with-its-hulu...
  - mbesto 12y ago
    IIRC Fred Wilson completely devalued Hulu (like 0 value) stating "it has no rights to any of it's content". Can't find the source at the moment. Anyone know?

29 points by balbaugh 12y ago

Replace "labels" with "networks," and "Spotify" with "Hulu," and we've read this story 100 times. It hasn't really ever worked out for them.

dageshi 12y ago

Can anyone think of a company with deep enough pockets to afford $10b that would actually want Spotify? Because there doesn't seem to be an obvious fit to me.

lsh123 12y ago
Amazon just launched their own music service. I can easily see someone like Microsoft trying to jump in and buy Spotify to create their own version.
- bicknergseng 12y ago
  They have had their own version for years in http://www.xbox.com/music http://www.xbox.com/music.
  - freehunter 12y ago
    In fact, Microsoft was one of the first major players in the streaming subscription market. Before Google Play Music Pass, before Spotify, there was the Zune Pass. It was a sweeter deal back then, $10/mo for all you can eat and you got $10 in credit for songs every month that you could keep even after you cancelled your subscription. Basically pre-pay for 10 songs every month and you get the entire streaming catalog. Rhapsody was the only competitor at the time that I knew of. The Zune Pass service didn't really catch on because, well... you needed a Zune.
    - zequel 12y ago
      $14.99/mo, though at one time I was offered $100/year, should gave grabbed it. The credit plan was discontinued and only the $10/mo for streaming/no credits is currently offered as an xbox music pass. I was grandfathered in and still receive the monthly credits to this day. Usually it's a scramble at the end of the month to use the credits since they don't roll over. Overall, it's a good deal though. Bit clunky though since you can stream music using the latest clients (HTML, xbox, ios) but must use old Zune software to purchase it.
  - pavlov 12y ago
    That doesn't seem to usually stop Microsoft from making an acquisition, though. They seem happy to pay for a brand even when merging it into their palette will be a major technical or bureaucratical headache. They had in-house versions of everything Skype offers, yet they spent $8.5 billion on Skype. They had an in-house hardware team, yet they spent $7.2 billion on Nokia Mobile Devices. If I had to guess, Microsoft is probably considering a Spotify purchase. The Xbox brand is ailing recently, and they must be getting a bit scared.
- tkmcc 12y ago
  Microsoft already has their own version: http://www.xbox.com/en-US/music/music-pass http://www.xbox.com/en-US/music/music-pass
  - lsh123 12y ago
    I guess it shows that I don't have xbox :)
tehwebguy 12y ago
Apple? They have the cash and iTunes sales are on the decline.
- balbaugh 12y ago
  Apple just recently purchased a streaming music service called Beats.
justincormack 12y ago
Google?
- freehunter 12y ago
  Google already has Google Play Music All Access Pass Super Long Microsoft-Style Name that's a halfway decent service.
  - hobofan 12y ago
    In my experience All Access is a much better service than Spotify. No unnecessary playlists, I just add the album I want to my library where it sits next to all the other music I already owned before. Also no buggy mobile client that forces me to redownload the entire library after every update /rant
balbaugh 12y ago
The article mentions various large telcom and mobile companies like Orange and Verizon but I find it hard to see such a thing as a good fit.
balbaugh 12y ago
A new post on digitalmusicnews.com points to Microsoft, Google, and Amazon. "Now, according to more sources talking to Digital Music News, Microsoft, Google and ‘possibly Amazon’ are all entertaining the idea of buying Spotify, though $10 billion could be considered an aggressive ask."[1] [1] http://www.digitalmusicnews.com/permalink/2014/06/12/microsoft-google-amazon-entertaining-10-billion-spotify-purchase http://www.digitalmusicnews.com/permalink/2014/06/12/microso...

d0mme 12y ago

Spotify will just be pure shit after that when it comes true. Flooding people with unnecessary ads and pushing their own artists, will fail this app. My cancellation of subscription and removal of this app as well.

mullingitover 12y ago

Pretty sure the labels are giving Spotify sweetheart licensing deals right now to boost a business in which they're a stakeholder, but once they're not invested in the business they have every incentive to put the screws to the new owner by jacking up licensing fees. I've heard that Hulu is the same kind of deal.

whoismua 12y ago
The new owners could the rights in writing and for x years.
x0x0 12y ago
Google offered perhaps $4B for hulu, predicated on long term, and perhaps exclusive, licensing [1] (this doesn't mention a price; I seem to remember reading it at the time but can't find a link). The content owners said no, which gives away the whole game -- wait a couple years, then take the screws to the owners for licensing deals. [1] http://allthingsd.com/20110906/google-goes-big-with-its-hulu-bid/ http://allthingsd.com/20110906/google-goes-big-with-its-hulu...
- mbesto 12y ago
  IIRC Fred Wilson completely devalued Hulu (like 0 value) stating "it has no rights to any of it's content". Can't find the source at the moment. Anyone know?