Spotify

[harveymt]

Saw these articles about Spotify which may be of interest.

http://www.guardian.co.uk/technology/blog/2009/oct/08/spotify-internet

http://www.guardian.co.uk/technology/blog/2009/oct/08/we7-spotify-music-licensing-figures

 

[JoelSim]

Very interesting. The record labels would rather get paid a small sum and let something like Spotify get off the ground, rather than have their music illegally downloaded (which would only get worse as time goes on)

 

[idc]

Interesting articles on which my thoughts are

1 - Daniel Eck has a business model and financial backing that means he knows that profits are not due for some time. After the .com crash any investor in an online service is now more realistic about how online companies develop.

2 - Help on calculating the figures has come from We7, another company, with a different business model, but a rival all the same.

3 - There is total speculation on calculating the figures, which at one point is a range from £1 million to £6 million. So not very accurate then.

4 - the author misses out a revenue stream for Spotify, which is the link to 7digital. I am sure Spotify will get a payment for each click through and subsequent purchase.

5 - a recent thread on the forum shows how many people have increased their purchases of CDs because of Spotify. I am in the minority who just listens to Spotify. I am sure the record companies will know that, so it is in their interests to keep Spotify going.

6 - Spotify only has sound adverts, there are no picture adverts on its site. There is a lot of empty space on the Spotify application, particularly on the right of the page. They have space to expand and add a source of revenue.

 

[harveymt]

I think the main difference is that Spotify looks like it wants to run as a loss leader for a while to hook people in before maybe heading to pay only. Personally I would have no problem paying the tenner a month for premium and, like idc, I don't think I would bother buying the CDs. I think if they can get the application onto more platforms (especially in-car, maybe with the offline service) then this would broaden their customer base.

We7 seems to be trying to use a more ad-based business model which is ok but I think people do get put off by constant ads. I also think the Spotify application looks better or is more user friendly than the web based We7.

Either way, it's good to see there is competition springing up for legal sources of music. I for one have never been a fan of illegal downloads. Nearly all my mates do it but I've refrained so far.

 

[Anonymous]

spotify will do very well IMHO .... will not surprise me if ebay buys a huge stake in them (ebay is expanding rapidly ... they own gumtree, paypal, craigslist and a few other companies) ... I see a huge potential there ... especially on the mobile phone market and advertising revenue

even my 13 yr old daughter and her school mates are all talking about spotify constantly

would be interesting to see what happens with the 'free accounts' ... probably will allow those with the free accounts to continue using the service, but new accounts will be by subscription only (we already see that new free accounts are by invite only)

 

[John Duncan]

Having seen that Google intend to enter the online music market, I'd be very nervous if I were Spotify. Either that or rubbing my hands at the prospect of being bought by them.