> Spotify is at the mercy of major record labels
For now. They have a large enough reach to essentially "become" a major record label, all they need is to start signing artists to contracts.
For now. They have a large enough reach to essentially "become" a major record label, all they need is to start signing artists to contracts.
I was thinking that if Spotify kept the same experience for listeners that they had now in order to grow their subscription base, and just reported higher earnings for the artists they had signed versus ones signed to a 'different' label, that over time as contracts came up for renewal people would move over to Spotify.
Good content is good content. For music - it's even better if it's not yet well known because for some reason people think more highly of themselves for being an early fan. Early discovery favors audio moreso than video. So pushing originals (newly signed artists) is a great strategy for Spotify. So long as it's good music.
Mind you, I don't like video being fragmented but that's a more deliberate choice a lot of the time for me. I'll subscribe to a few places based on available and original content--somewhat grudgingly to be sure--but I accept those are my options.
Google is worth 1000B, general motors is worth 60B.
Why? I'd contest GM has more 'stuff' and abilities to do 'anything'. Google has a bigger population, but what does that translate to when the value of tech might be lower.
I'm not saying tech isnt more valuable, but there might be something wrong with google being 1,700% larger market cap than GM.
GM exists in a very competitive industry with major competitors at or above their capacity, while Google has maybe 1 or 2 competitors in several of various industries, and dominates several independently and almost completely.
GM might be able to claw aware market-share from competitors, and end up more valuable, but not by that much. Google is in the sort of position that allows them to potentially capture a brand new industry if one appears.
GM could (relatively) easily get broken up or get massively devalued to to a large market event or by falling behind in an industry that is rapidly changing shape from what they are accustomed to. Google falling out of existence/dominance would almost have to be the result of a fundamental societal shift at this point (or anti-monopoly legislation somehow), and they could throw enormous amounts of cash at problems for years before facing insolvency (from my understanding).
Spotify definitely doesn't have enough market share for that to be true, and it's not clear that they ever will. Youtube has always had more free listeners than Spotify and Apple Music is set to surpass Spotify in number of paid listeners sometime this summer.