Tag: Profit

Netflix Is The Model for Spotify, Watch And Learn…

Ahem… we were making these observations in 2013 when we wrote, “Why Spotify is not Netflix (But Maybe It Should Be)“. In that piece we detailed the practical and philosophical divide between the record business and the film/TV businesses online.

Nowhere is that divide in logic, reason, investment and profit more profound than the differences between Spotify and Netflix. It’s time for the record business to recognize and understand there is a mature digital business model that exists in digital distrbution, and it includes both streaming and capital investment for the development of new works.

Music Business Worldwide Reports:

Netflix is doing a lot of things that Spotify isn’t.

This year, across licensed content and its own original shows, the company will spend $5bn on programming.

It’s just launched in 109 countries, including India, where Daniel Ek is yet to tread.

It boasts around 75m paying subscribers – three times that of  Spotify.

Oh, and it’s turning a profit.

And you know what else, Netflix has NO FREE TIER and rotates inventory MONTHLY.

Watch and learn people. Seriously, it’s not that hard.

READ THE FULL STORY AT MUSIC BUSINESS WORLDWIDE:
http://www.musicbusinessworldwide.com/netflix-is-putting-all-sides-of-the-music-business-to-shame/

 

 

Why Spotify is not Netflix (But Maybe It Should Be)

by Trichordist Editor

Spotify seeks to hire U.S. filings expert as bankers eye IPO | Reuters

* Move adds to speculation about IPO

* Senior banker says firm to be valued at $7-8 bln

* Spotify doubled revenue but registered loss in 2012

STOCKHOLM, Feb 17 (Reuters) – Online music streaming service Spotify is recruiting a U.S. financial reporting specialist, adding to speculation that the Swedish start-up is preparing for a share listing, which one banker said could value the firm at as much as $8 billion.

Meeting U.S. Securities and Exchange Commission (SEC) standards for filing financial disclosures is essential for any firm planning to go public and bankers and lawyers said they inferred from the job ad that the company is getting ready for an initial public share offering (IPO), possibly next year.)

READ THE FULL STORY AT REUTERS:
http://www.reuters.com/article/2014/02/17/spotify-idUSL6N0LM2E520140217

RELATED:

If Spotify is saving Swedish music sales, why aren’t indies celebrating?

While Artists are Bitching About Spotify Royalties… Google, YouTube and Grooveshark are in the Getaway Car…

Get Ready For The Streaming-Music Die-Off

by Trichordist Editor

USC Studies How Online Piracy Profits from Advertising Revenues

Some great work has been done this year by Jonathan Taplin and the USC Annenberg Innovation Lab in studying the relationship between online ad networks and media piracy for profit.

Large Pirate sites distribute illegal content and continue to steal trademarked, copyrighted content and siphon millions of dollars away from the creative community, making it much harder for artists to make a living. We do not believe that government regulation alone is the answer to the Piracy problem, but rather that the self-regulation of major sectors like the online advertising industry could make it harder for the “Kim Dotcom’s” of the world to unfairly exploit artists.

A fantastic round up of media coverage from the universities research can be found here:
http://www.annenberglab.com/category/tags/ad-transparency-report

by Trichordist Editor