Re:The clock is ticking for Spotify
by nine_k on Sunday February 12, 2017 @10:49AM
(#13628856)
Is dealing with the music industry, which cranks licensing costs up every year, a failed business model? Maybe. Spotify is allowed to live but not to thrive.
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>"Is dealing with the music industry, which cranks licensing costs up every year, a failed business model?"
I think it could possibly be. Nobody has been successful yet at least that I can think of. I think the problem is the better you do the more those licenses will cost. I am trying to think of another industry that works that way. I guess cable is similar with content in that the more subscribers a cable operator has the more expensive licensing the content is. So maybe licensing entertainment content is just a very constrained business model?
I can't imagine if I ran a restaurant and my costs from my food purveyors increased with the success of the restaurant. I think it would be very difficult to make a go of that.