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: