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(Digital Spy)   Spotify said to be worth more than $4 billion. For what?   (digitalspy.com) divider line 75
    More: Unlikely, Digital Sky Technologies, Swedish companies, Kleiner Perkins Caufield & Byers, music streaming, Spotify, valuations  
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1529 clicks; posted to Geek » on 24 Nov 2013 at 9:13 AM (42 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-11-24 09:14:50 AM
ads... did you know Birchbox can deliver high quality customer personal grooming products right to your door?

spotify rocks. i'd sell my soul to it if I could. but i already gave it to Milhouse. grr.

-mL
 
2013-11-24 09:26:33 AM
For unplugging rights?
 
2013-11-24 09:28:49 AM
95% of what people do these days leaves me asking the same question.
 
2013-11-24 10:11:53 AM

Quantum Apostrophe: 95% of what people do these days leaves me asking the same question.


Shouldn't you be screaming about atom ages and 3d printers and such? You don't just get to sail on not trolling when you don't want to.
 
2013-11-24 10:15:02 AM
Its been said (by me) that my poop is worth a million dollars per pound, doesn't make it true.

/yet
//One of these days those VC vultures will realize my vision!
 
2013-11-24 10:24:47 AM
What the hell is Spotify?

/asked nearly everyone.
 
Juc
2013-11-24 10:38:19 AM

ajgeek: What the hell is Spotify?

/asked nearly everyone.


some sort of music service that's unavailable in my country.
 
2013-11-24 10:39:30 AM

ajgeek: What the hell is Spotify?

/asked nearly everyone.


It's what very small children do when they hear a buzzing sound.
 
2013-11-24 10:48:20 AM
i love spotify

/i love lamp
 
2013-11-24 10:58:25 AM

BumpInTheNight: Its been said (by me) that my poop is worth a million dollars per pound, doesn't make it true.

/yet
//One of these days those VC vultures will realize my vision!


Is it too late to get in on the ground floor of that action? I too believe I can produce quality excrement.
 
2013-11-24 11:24:35 AM

ajgeek: What the hell is Spotify?

/asked nearly everyone.


Except the 6 million people who subscribe to their service.

By far, the best music streaming service out there. $10 / month and you can stream just about any song from just about any artist, set up your own playlists, stream to your computer or smart phone or tablet or Roku or smart TV, download your playlists on your phone, etc.  It's basically like having your phone, computer, etc., all have the entire playlist of iTunes downloaded and synced automatically across all of your devices.

They also have an ad supported version but it's not nearly as awesome.

Oh, and due to weird copyright laws, it's only available in the US.

Either way, they have about $60 million a month in subscription revenue plus whatever they get from the ad supported site.  I don't know about being a $4 billion company, but it would not be unreasonable to say that they're worth at least $1 billion.
 
2013-11-24 11:25:46 AM

Juc: ajgeek: What the hell is Spotify?

/asked nearly everyone.

some sort of music service that's unavailable in my country.


That's your punishment for sending us Nickleback and Justin Bieber.  No Spotify for you!
 
kab
2013-11-24 11:27:32 AM
Who knew that giving artists $0.0063 per play would be profitable?
 
2013-11-24 11:33:41 AM

meanmutton: ajgeek: What the hell is Spotify?

/asked nearly everyone.

Except the 6 million people who subscribe to their service.

By far, the best music streaming service out there. $10 / month and you can stream just about any song from just about any artist, set up your own playlists, stream to your computer or smart phone or tablet or Roku or smart TV, download your playlists on your phone, etc.  It's basically like having your phone, computer, etc., all have the entire playlist of iTunes downloaded and synced automatically across all of your devices.

They also have an ad supported version but it's not nearly as awesome.

Oh, and due to weird copyright laws, it's only available in the US.

Either way, they have about $60 million a month in subscription revenue plus whatever they get from the ad supported site.  I don't know about being a $4 billion company, but it would not be unreasonable to say that they're worth at least $1 billion.


How is this better than rhapsody which I've had for over 7 years
 
2013-11-24 11:45:41 AM
Spotify is worth at least 1.5 Snapchats.
 
2013-11-24 11:48:41 AM
It's valuable because old people think technology is magic, and the young people running startup tech companies are wizards.

Magic is very valuable.
 
2013-11-24 12:00:14 PM
Spotify has turned me onto at least 100 different artists that will never be on the radio.  The amount of country music that doesn't suck is amazing.  You just have to look for it.
 
2013-11-24 12:08:02 PM
Spotify is awesome.

One of the few things I pony up a subscription for.
 
2013-11-24 12:10:09 PM

sendtodave: It's valuable because old people think technology is magic, and the young people running startup tech companies are wizards.

Magic is very valuable.



Indeed.

images3.wikia.nocookie.net
 
2013-11-24 12:11:57 PM

kab: Who knew that giving artists $0.0063 per play would be profitable?


Thats 100000 times more than they get when any US radio station plays them
 
2013-11-24 12:18:10 PM
Well, good.

If Spotify is worth $4 billion, the the stoopid little phone game I'm writing in my spare time is worth at least $100K.
 
2013-11-24 12:20:17 PM
6 million subscribers * $10/month * 12 months/year = $722 million/year

If you assume Spotify will still be around (and successful) in a few years, $4 billion seems like a reasonable valuation, subby.
 
2013-11-24 12:23:01 PM

sendtodave: It's valuable because old people think technology is magic, and the young people running startup tech companies are wizards.

Magic is very valuable.


your amount of 'oopit is overwhelming. you're confusing old with wealthy, and wealthy doesn't give a damn what the good or service is. they just use it to increase their wealth.
 
2013-11-24 12:31:05 PM
True Fact... I'm listening to Pandora as I read this thread.

NP:  Some obscure Radiohead track I've never heard of before
 
2013-11-24 12:40:59 PM

meanmutton: Oh, and due to weird copyright laws, it's only available in the US.


The UK, Australia, New Zealand, Germany, Sweden, Finland, Norway, Denmark, France, Spain, Austria, Belgium, Switzerland, The Netherlands, Ireland, Luxembourg, Italy, Poland, Portugal, Mexico, Singapore, Hong Kong, Malaysia, Lithuania, Latvia, Estonia, Iceland, Greece, Turkey, Argentina, and Taiwan would like to disagree.

MrEricSir: 6 million subscribers * $10/month * 12 months/year = $722 million/year

If you assume Spotify will still be around (and successful) in a few years, $4 billion seems like a reasonable valuation, subby.


Wasn't Spotify fighting a losing battle to turn a profit? If so, why would a company haemorrhaging money be worth 4 billion?
 
2013-11-24 12:47:32 PM

DerAppie: meanmutton: Oh, and due to weird copyright laws, it's only available in the US.

The UK, Australia, New Zealand, Germany, Sweden, Finland, Norway, Denmark, France, Spain, Austria, Belgium, Switzerland, The Netherlands, Ireland, Luxembourg, Italy, Poland, Portugal, Mexico, Singapore, Hong Kong, Malaysia, Lithuania, Latvia, Estonia, Iceland, Greece, Turkey, Argentina, and Taiwan would like to disagree.

MrEricSir: 6 million subscribers * $10/month * 12 months/year = $722 million/year

If you assume Spotify will still be around (and successful) in a few years, $4 billion seems like a reasonable valuation, subby.

Wasn't Spotify fighting a losing battle to turn a profit? If so, why would a company haemorrhaging money be worth 4 billion?



Error: Circular Reference
 
2013-11-24 12:55:21 PM
They sell ads and subscriptions, subby. They actually bring in revenue.

You would have hated the late 90's
 
2013-11-24 12:56:36 PM

kab: Who knew that giving artists $0.0063 per play would be profitable?


This.
 
2013-11-24 01:12:04 PM

Norfolking Chance: kab: Who knew that giving artists $0.0063 per play would be profitable?

Thats 100000 times more than they get when any US radio station plays them


Nnnnnno, no, no it's not.  And it's certainly worth a hell of a lot more if a radio station plays them.  Because the radio isn't going to play that song you like whenever you feel like hearing it, so you have to go purchase it, or pirate it

:/

Exploit creative people!  Woohooo!
 
2013-11-24 01:15:29 PM

kab: Who knew that giving artists $0.0063 per play would be profitable?


That's $0.0063 cents the artists wouldn't be getting if I was forced to pirate to preview music that I will buy if I love it.  Even the artists I end up not liking get that $0.0063 and the ones that take a little while for me to fall in/out of love with get quite a bit more.
 
2013-11-24 01:15:48 PM
I like the fact that Spotify allows more direct control of what I listen to than I ever did on Pandora, and I'm just using the ad supported version.  Think of it as a personalized FM station that allows nonstop requests and repeats, with the occasional commercial break.  Their catalog is a heck of alot larger than Pandora's, and I can just let it run without it derping out on me.  So long as this service is up and running, there really isn't any reason to pirate even vaguely obscure music in the US.  Now, the money that the artists are getting is something that is going to have to be worked out, but it seems to be a viable model.
 
2013-11-24 01:24:10 PM

kab: Who knew that giving artists $0.0063 per play would be profitable?


I have a playlist of poor artists that I start playing when I go to bed. Just so I can help out.

That nickel is from me, Citizen Cope
 
2013-11-24 01:26:00 PM

kroonermanblack: Quantum Apostrophe: 95% of what people do these days leaves me asking the same question.

Shouldn't you be screaming about atom ages and 3d printers and such? You don't just get to sail on not trolling when you don't want to.


You're not the boss of me!
/PS: I never troll.
 
2013-11-24 01:33:37 PM

sendtodave: It's valuable because old people think technology is magic, and the young people running startup tech companies are wizards.

Magic is very valuable.


Only if you have the p9
 
2013-11-24 01:40:28 PM

GRCooper: kab: Who knew that giving artists $0.0063 per play would be profitable?

I have a playlist of poor artists that I start playing when I go to bed. Just so I can help out.

That nickel is from me, Citizen Cope


The free market in action.  Well done.  I might have to do the same thing
 
kab
2013-11-24 01:50:43 PM

12349876: That's $0.0063 cents the artists wouldn't be getting if I was forced to pirate to preview music that I will buy if I love it.


Which sort of goes against Spotify's reason for existence to begin with.
 
2013-11-24 01:56:23 PM

kab: 12349876: That's $0.0063 cents the artists wouldn't be getting if I was forced to pirate to preview music that I will buy if I love it.

Which sort of goes against Spotify's reason for existence to begin with.


They can be happy with me listening to their ads while I preview shiat (and a little back catalog listening) or they can force me somewhere else.
 
2013-11-24 02:11:41 PM

meanmutton: Oh, and due to weird copyright laws, it's only available in the US.


Thats completely untrue.  Its available in many countries, and as it is a Sweedish company the US isn't even the first place it is available in.
 
2013-11-24 02:16:15 PM

kab: Who knew that giving artists $0.0063 per play would be profitable?


Well I hadn't bought music in over a decade before I paid for a spotify subscription due to convenience, and I know there are a shiatton of people like me - so thats .0063 more cents per play from many of us then they would ever get before.

Sorry, owning physical copies of music is going the way out the dinosaur except for the people who are always going to insist that records sound better because they are so "warm".
 
2013-11-24 02:26:31 PM

lilplatinum: so thats .0063 more cents per play from many of us then they would ever get before.


So after 1,000 plays they'd get 6.3 cents. Or a tiny fraction of what 1,000 plays on radio gets them.
 
2013-11-24 02:30:23 PM

WhyteRaven74: lilplatinum: so thats .0063 more cents per play from many of us then they would ever get before.

So after 1,000 plays they'd get 6.3 cents. Or a tiny fraction of what 1,000 plays on radio gets them.


Except that the radio broadcast is going out to a whole market within range of the signal.  The Spotify play is going to (generally) a single person, at most a small group.
 
2013-11-24 02:37:08 PM

WhyteRaven74: lilplatinum: so thats .0063 more cents per play from many of us then they would ever get before.

So after 1,000 plays they'd get 6.3 cents. Or a tiny fraction of what 1,000 plays on radio gets them.


Radio is broadcast to lots of people, spotify is broadcast to individuals.   Not to mention a much broader range of music is available to be played on spotify than whatever top 25 garbage pop tracks are constantly rotated on the radio.   So instead of getting paid per track the get a lot more people playing every track on their new albums.

If they want to whine about not getting paid enough they probably should have done something about the whole record label monopoly years ago. 

Adapt with the times or get left behind - streaming music is the only way you are going to get money out of a majority of my generation and younger outside of live shows.
 
2013-11-24 03:00:13 PM
If anyone is like me, until a couple weeks ago, you didn't realize that Spotify had comedy albums on it. There is also an odd audiobook here and there. In retrospect it makes a lot of sense, but I had kind of a mind blown moment when I searched for a stand-up randomly.
 
2013-11-24 03:15:26 PM

Barry Lyndon's Annuity Cheque: If anyone is like me, until a couple weeks ago, you didn't realize that Spotify had comedy albums on it. There is also an odd audiobook here and there. In retrospect it makes a lot of sense, but I had kind of a mind blown moment when I searched for a stand-up randomly.


Whoa thanks
 
2013-11-24 03:25:06 PM

lilplatinum: streaming music is the only way you are going to get money out of a majority of my generation and younger outside of live shows.


The issue is with spotify paying so little. Even after a million plays someone would only get $63. That's not really going to cut it. That also gives an idea of how little spotify will spend in a month paying royalties. Even if they got to a billion total plays, it would cost them a whopping $63,000 total. Given what they're making each month from subscription fees along, they're not exactly spending a major amount of their revenues on royalty payments even though they'll whine they can't possibly actually pay more per play.
 
2013-11-24 03:25:19 PM
I'm happy with last.fm because 99% of the time I play my own music and just like to keep track of what I listen to.  I assume spotify doesn't keep track of what I listen to and keep stats?
 
2013-11-24 03:29:53 PM

frodofraggins: I'm happy with last.fm because 99% of the time I play my own music and just like to keep track of what I listen to.  I assume spotify doesn't keep track of what I listen to and keep stats?


I don't think it does natively, but you can link your last.fm and Spotify accounts so that it does it for you.
 
2013-11-24 03:36:34 PM
I was listening to "Jazz Concerto for piano, strings, and percussion" by Joseph Horovitz the other night. Tried to Spotify it. The app told me it was "Fur Elise."
 
2013-11-24 03:42:03 PM

WhyteRaven74: lilplatinum: streaming music is the only way you are going to get money out of a majority of my generation and younger outside of live shows.

The issue is with spotify paying so little. Even after a million plays someone would only get $63. That's not really going to cut it. That also gives an idea of how little spotify will spend in a month paying royalties. Even if they got to a billion total plays, it would cost them a whopping $63,000 total. Given what they're making each month from subscription fees along, they're not exactly spending a major amount of their revenues on royalty payments even though they'll whine they can't possibly actually pay more per play.


Considering Spotify is forced to go through production companies to pay royalties... let's put it this way. How much does an artist get when a CD costs $15... one time. Per play on radio, it depends on listener numbers, but could pay $20 or $200 for a massive audience. Which sounds pretty good, until you figure the total number of plays is usually nearly done in a few weeks. Considering those royalties are the production company, not the artist... try and calculate how much money is kept by the corporation and how mucht the artist keeps. So now consider for a per play cost of .0063 that the artist gets. That means the royalties for the production company are like 10-20x that per play.

Here's a Forbes article about how Spotify is significantly better for an artist per play than radio. I'm not sure it's fair to blame Spotify compared to who has been to blame for decades...RIAA members.
 
2013-11-24 03:49:47 PM

Barry Lyndon's Annuity Cheque: If anyone is like me, until a couple weeks ago, you didn't realize that Spotify had comedy albums on it. There is also an odd audiobook here and there. In retrospect it makes a lot of sense, but I had kind of a mind blown moment when I searched for a stand-up randomly.


Yeah.  Plus, all those local'ish bands from my college days that nobody else has heard of are on there.  Fetchin' Bones?  Yup.  Pressure Boys?  Yup.

/also, Hardcore Punk out the wazoo
 
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