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LATEST ARTICLES - PAGE 10

Spotify Lost Lots of Money but Grew Revenue

Jason Tate

Peter Kafka, writing for Re/Code, on how Spotify lost a lot of money last year, but revenue grew:

Filings show that Spotify, based in Sweden and the U.K., generated revenue of $2.12 billion last year, up about 80 percent from the $1.18 billion it brought in the prior year (all prices in the story converted from euros to dollars at the exchange rate from December 31, 2015). Losses, meanwhile, hit $188.7 million — but that number was only up 6.7 percent from the previous year’s total of $176.9 million.

It looks like their paid subscribers hit 28 million.

Inside Pandora’s Fight with Spotify and Apple Music

Jason Tate

John Paul Titlow, writing for Fast Company, looks at Pandora and their attempt to fight back the big streaming services like Spotify and Apple Music:

By shifting toward on-demand subscriptions, Pandora is hoping to add a new, much deeper layer of data and understanding to its artificial brain. By creating artist-based stations and thumbing songs, listeners can teach Pandora a lot—but behaviors like saving albums and listening to them on repeat or adding individual songs to playlists are vastly more informative (as Spotify and Apple already know). Right now, if you’re obsessed with the new Rihanna album, Pandora has no idea. These are the types of blind spots the service needs to fill in, especially if it wants to target superfans with special perks.

Data is just as crucial when it comes to selling concert tickets.

I’m fascinated by the idea of big music data and how it can find the perfect next band or album for a listener. I think Pandora is smart to be moving into trying to tie their music service into other things like selling concert tickets. But, I’m bearish on the company as a whole. They’ve been relegated to what is basically a feature in other apps and there’s no reason to pay for something you already get in a good enough fashion somewhere else.

Spotify Acquires CrowdAlbum

Jason Tate

Glenn Peoples, writing for TechCrunch, on Spotify’s aquistion of CrowdAlbum:

Spotify announced Wednesday it has acquired CrowdAlbum, a service that creates albums of events based on the location and time of photos and videos people share on social media sites. It can index content for any kind of event — sports, Earth Day festivals, political rallies — but mostly aggregates photos from music concerts and festivals.

Spotify Raises $1 Billion in Debt

Jason Tate

Josh Constine, writing for TechCrunch, looks at Spotify’s latest move of raising $1 billion in convertible debt to fight Apple Music.

What the debt does provide Spotify is opportunities to make acquisitions. With SoundCloud and Pandora in the dumps, Spotify could potentially make a play to bring more independent music or radio listeners into its music empire.]

Why would Spotify agree to these aggressive terms? Because it’s competing with the most well funded company in history: Apple.

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Behind Spotify’s “Discovery Weekly” Playlists

Jason Tate

Nikhil Sonnad, writing for Quartz, looks at the technology behind Spotify’s “Discover Weekly” playlists.

“We now have more technology than ever before to ensure that if you’re the smallest, strangest musician in the world, doing something that only 20 people in the world will dig, we can now find those 20 people and connect the dots between the artist and listeners,” Matthew Ogle, who oversees the service at Spotify, told me recently. “Discovery Weekly is just a really compelling new way to do that at a scale that’s never been done before.”

Although I am a professed album lover, I think these playlists are the best thing Spotify has been doing recently. It’s the kind of personalization that is only going to get better, and the trick of finding someone that next band they love is going to put me out of business.

Is SoundCloud Worth More Than Spotify?

Soundcloud
Jason Tate

Alex Moazed, writing for TechCrunch, on why SoundCloud may be more valuable than Spotify in the long run:

SoundCloud has a platform business model where its content is created by its network of users, not acquired through licensing deals. For SoundCloud, the more audio producers that join the network, the more listeners will want to join. This increase in users, in turn, incentivizes more creatives to post their music or podcasts on SoundCloud, and the network effects continue to build from there.

In contrast, Spotify is primarily a reseller of music inventory owned by record labels and publishers. It’s simply a distributor for the latest releases, sort of like a Walmart for music streaming. Most of the songs on Spotify you could find on Apple Music, Pandora or another streaming service. As a result, Spotify lacks the network effects that SoundCloud enjoys.

But what if Spotify, or Apple Music (or Facebook, or YouTube), adds in the features that SoundCloud currently provides? Does SoundCloud have a monetization strategy that can scale or do they risk being a just a feature in someone else’s business?

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