Re:Spotify loses $59.1 million on $244.5 million in revenue
by dasil003 on Saturday October 06, 2012 @11:42AM
(#4620775)
Their goal is to stripmine music startups as a revenue strategy. They'd rather have the companies there as an alternative to piracy, but they don't want them to have any power at all, so they string them along and siphon as much investment as they can.
Re:Spotify loses $59.1 million on $244.5 million in revenue
by macspoofing on Saturday October 06, 2012 @11:25AM
(#4620744)
>This predatory relationship has to stop if the record companies want to exist at all in the future.
There is a lot demand for their product. It's not like people are switching to something else. People still want Lady Gaga and the Beatles.
Re:Spotify loses $59.1 million on $244.5 million in revenue
by jbigelow76 on Saturday October 06, 2012 @12:25PM
(#4620910)
> This predatory relationship has to stop if the record companies want to exist at all in the future.
If I had to gamble on who would be around in 10 years, Spotify or the labels, sad to say but my money would be on the labels.
Re:Spotify loses $59.1 million on $244.5 million in revenue
by pattern on Saturday October 06, 2012 @06:12PM
(#4621920)
I don't think the parent was claiming that Spotify would necessarily outlive the record labels, but rather some new paradigm for music recording/distribution would disrupt the label's current stranglehold.
“Virtually every new dollar of revenue went directly to music companies as royalty payments, evidencing the fact that the more members Spotify adds, the more money the company loses. In almost a one-for-one scenario, every dollar Spotify is generating immediately exits the company due to licensing fees.”
This predatory relationship has to stop if the record companies want to exist at all in the future. I don't think they realize that they're pointing the gun at their own foot.