Spotify opens on NYSE, valuing company at almost $30B

Re:Spotify opens on NYSE, valuing company at almost $30B by abalone on Tuesday April 03, 2018 @10:01PM (#16751255)

Not enough people talking about this: The fundamental challenge for Spotify is they have to make money while Apple Music doesn't.

Apple Music can run break-even as a platform feature, like the App Store was (at least in the early days). Or they could pay artists more with that margin and get more exclusives. Either way, it's a fundamental long term competitive disadvantage for Spotify.

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Re:Spotify opens on NYSE, valuing company at almost $30B by vlunkr on Tuesday April 03, 2018 @10:11PM (#16751304)

I know it’s just an acecdote, but I don’t know a single person that uses Apple Music. Spotify already has a huge library and mindshare. It was too little too late for Apple IMO

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Re:Spotify opens on NYSE, valuing company at almost $30B by abalone on Tuesday April 03, 2018 @10:30PM (#16751411)

Which is why you should never draw conclusions from anecdotes.[1]

[1] Apple Music is set to surpass Spotify in paid US subscribers this summer https://www.theverge.com/2018/2/4/16971436/apple-music-surpa...

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Re:Spotify opens on NYSE, valuing company at almost $30B by pertsix on Tuesday April 03, 2018 @11:14PM (#16751586)

Most of these users are converting from their shrinking iTunes business.

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Re:Spotify opens on NYSE, valuing company at almost $30B by abalone on Wednesday April 04, 2018 @12:15AM (#16751844)

So what’s your point? Apple Music is still overtaking Spotify this year. And just like iTunes, they don’t need to make much money on it.

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Re:Spotify opens on NYSE, valuing company at almost $30B by KozmoNau7 on Wednesday April 04, 2018 @05:45AM (#16753305)

Only in the US, Spotify is huge in Europe and other parts of the world, where Apple Music is basically unknown.

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Re:Spotify opens on NYSE, valuing company at almost $30B by abalone on Wednesday April 04, 2018 @01:53PM (#16757172)

Spotify is actually small in the world. All music service subscribers combined are a mere ~110 million.

Eddy Cue recent pegged the market opportunity at 2 billion.[1]

And Apple Music ramping the fastest.[2]

[1] https://www.cnet.com/news/apple-music-hits-38-million-subscr...

[2] https://twitter.com/asymco/status/973568200616050688?ref_src...

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Re:Spotify opens on NYSE, valuing company at almost $30B by KozmoNau7 on Wednesday April 04, 2018 @05:00PM (#16759029)

Comparing Spotify to other streaming services, obviously.

Apple music is basically a no-show in Europe and Asia.

And those numbers are only paid subs. Spotify has a ton of free, ad-listening users.

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