OT: Spotify

[theRU]

Who's in on that one?

 

[CJ1987]

Not sure what you're asking but I have a monthly subscription.....

 

[RBS05]

I assume he means the stock since they IPOed a couple days ago.

 

[CJ1987]

I assume he means the stock since they IPOed a couple days ago.

my bad, thanks

 

[ouchmyknee]

It was a direct listing so not much chance to get in on it. As someone who was one of the first 50 users in the US (back when they were Europe only) and friendly with one of the founders, it’s a really tough business to get behind. The business model is just so wonky. The more successful Spotify becomes, the more their costs rise with label payouts. I don’t think we’ll see this model mature until it becomes more viable for artists to break without the need of a major label. At that point, it might be worth investing in streaming, but right now prob not.

 

[Sect120]

It was a direct listing so not much chance to get in on it. As someone who was one of the first 50 users in the US (back when they were Europe only) and friendly with one of the founders, it’s a really tough business to get behind. The business model is just so wonky. The more successful Spotify becomes, the more their costs rise with label payouts. I don’t think we’ll see this model mature until it becomes more viable for artists to break without the need of a major label. At that point, it might be worth investing in streaming, but right now prob not.

you nailed that right on the head

 

[mynameisdick]

This guy nailed Facebook

http://aswathdamodaran.blogspot.com/2018/03/stream-on-ipo-valuation-of-spotify.html?m=1

 

[theRU]

It was a direct listing so not much chance to get in on it. As someone who was one of the first 50 users in the US (back when they were Europe only) and friendly with one of the founders, it’s a really tough business to get behind. The business model is just so wonky. The more successful Spotify becomes, the more their costs rise with label payouts. I don’t think we’ll see this model mature until it becomes more viable for artists to break without the need of a major label. At that point, it might be worth investing in streaming, but right now prob not.

My understanding is that the labels have some considerable equity in spotify. Since they control the licensing fees, they can control how successful spotify (their equity) becomes. If thats true, they will have a vested interest to ensure spotify succeeds over Apple and other streaming services where they do not have equity and stand to lose their business too.

is that accurate? Thoughts?

 

[Armor and Sword]

Is it possible that the small time artist might make more $$ off the stock than the royalties received through Spotify?