I think the biggest challenge for Spotify is that audio isn't the primary medium of consumption when people want to get entertained or learn. Audio is an add-on to an activity like listening while driving or doing daily chores. Video will always remain an active way of content consumption. I think their growth will lie in smart acquisitions, say, Headspace/Insight Timer/Calm.
Haha... I switched to Tidal in a heartbeat when I got a better deal. The switching cost for me is apparently a 0-rating here. Nice video as always, thank you both for doing this :)
Guys, Spotify is a killer PLATFORM. What if they move into live-streaming video games? Or music videos? Or video creation by users as competition to RUclips? The platform is the best in the business, and I can see them leveraging it in the future.
This is a tricky business. Being in the music industry, I can attest that they don't compensate musicians well. They are not living up to their verbose mission. Great survey as usual, Brians. I admire you both greatly.
SPOT has been my watchlist since IPO. However, I never felt confident enough to invest on it. I was looking for a details due diligence about Spotify. Thanks Brian square for eye opening analysis about this company. Will continue to watch ....
Im a sub at spot for as long as I can remember.(swede) there app is top notch, very user friendly. I think the median user spends on average 20h/month in app, great because moat -loved by there users. Also Brian, I think you underestimate the optionality. It is about how they can help creatora monetize and expand ther fans. You have to understand the musicians revenue split. 70%+ come from festival and concerts. How can spotify help creators expand there fan base and help them monetize their user base? I see huge optionality
What's very interesting about Spotify is that they are building a platform. They build the infrastructur behind everything they do and innovate. Especially with podcasts this will, in my opinion, be a lock in. They are the only competing company that actually focuses on Audio ( I doubt Amazon, Apple or Google actually focus too much on it) and therefore I'm confident they will be the most innovative with the best products. This will widen their moat in the long term and with rising alternative audio like podcasts aud audiobooks, margins will improve as well.
Spotify currently has episodes of Joe Rogan with video. Couldn't they take what you're doing right now on RUclips and offer the same service via Spotify so you can reach more people?
Yes, we've thought about that. We just lack the resources to do that for now. We only have so much attention we can give to projects. We would love to do that down the road!
This is just proving to be a great series. But why is it that the stocks have to be ones you've never researched before? I think that's a bit limiting, and leaves out so many great businesses. As long as you keep the format, i.e. research from scratch, the educational value will be the same anyway. Just my two cents, but i appreciate you might have a valid reason.
I suppose that's fair -- we like to show how we would research a stock as a beginner with no knowledge. We do have other series planned like "Is it anti-fragile?" where we take stocks that we know through our checklists in short form videos. Check those out!
I think you need to use the product, then analyze the financials. If you aren't using the product first you're going to miss things. You might as well let a Wall street guy manage your money then, that's your edge.
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I think the biggest challenge for Spotify is that audio isn't the primary medium of consumption when people want to get entertained or learn. Audio is an add-on to an activity like listening while driving or doing daily chores. Video will always remain an active way of content consumption.
I think their growth will lie in smart acquisitions, say, Headspace/Insight Timer/Calm.
Great thoughts!
I am a subscriber since 2013 on spotify. I won't lie I was suprised with these information! Thanks Brians 😊
Awesome! Thank you!
Haha... I switched to Tidal in a heartbeat when I got a better deal. The switching cost for me is apparently a 0-rating here.
Nice video as always, thank you both for doing this :)
Thank you!
Guys, Spotify is a killer PLATFORM. What if they move into live-streaming video games? Or music videos? Or video creation by users as competition to RUclips? The platform is the best in the business, and I can see them leveraging it in the future.
That would be great and would up my optionality score. I don't see that just yet, but if it happens, I'd re-rate it.
I just build a position with SPOT recently and plan to add more as it dips if it dips. This is an international business, they are still growing...
@41:50 Under Financials don't you mean resilience instead of resilance? (Sorry non-native English speaker)
Yes, resilience
This is a tricky business. Being in the music industry, I can attest that they don't compensate musicians well. They are not living up to their verbose mission. Great survey as usual, Brians. I admire you both greatly.
Appreciate that Ernesto!
@Tyson true, but Spotify takes a bigger piece of the cake from Artists with no label who are self publishing
I am lovin' those series. Thank you very much for sharing those with us!
I learn so much
Glad you like them!
FWIW: for those who write in British English, "scheme" is not a pejorative, merely the same as us Yanks writing "plan."
Great video Brian. Thank you for sharing all your valuable insights.
Glad you enjoyed it!
SPOT has been my watchlist since IPO. However, I never felt confident enough to invest on it. I was looking for a details due diligence about Spotify. Thanks Brian square for eye opening analysis about this company. Will continue to watch ....
Glad to hear it MD!
really learned a lot. Thanks
Can we buy Spotify @ $206 per share..
Thanks plenty for this video. I enjoyed it thoroughly.
Our pleasure!
The videos are great! Can you guys try to record at 1080p or higher though?
Long-term, yes. We will continually up our game.
This Was awesome! 🇩🇰
Glad you enjoyed it!
Im a sub at spot for as long as I can remember.(swede) there app is top notch, very user friendly. I think the median user spends on average 20h/month in app, great because moat -loved by there users. Also Brian, I think you underestimate the optionality. It is about how they can help creatora monetize and expand ther fans. You have to understand the musicians revenue split. 70%+ come from festival and concerts. How can spotify help creators expand there fan base and help them monetize their user base? I see huge optionality
All great points
What's very interesting about Spotify is that they are building a platform. They build the infrastructur behind everything they do and innovate. Especially with podcasts this will, in my opinion, be a lock in. They are the only competing company that actually focuses on Audio ( I doubt Amazon, Apple or Google actually focus too much on it) and therefore I'm confident they will be the most innovative with the best products. This will widen their moat in the long term and with rising alternative audio like podcasts aud audiobooks, margins will improve as well.
Yup, i like that they are platform building too
Would love to hear your assessment of RBLX.
On it!
Spotify currently has episodes of Joe Rogan with video. Couldn't they take what you're doing right now on RUclips and offer the same service via Spotify so you can reach more people?
Yes, we've thought about that. We just lack the resources to do that for now. We only have so much attention we can give to projects. We would love to do that down the road!
This is just proving to be a great series. But why is it that the stocks have to be ones you've never researched before? I think that's a bit limiting, and leaves out so many great businesses. As long as you keep the format, i.e. research from scratch, the educational value will be the same anyway. Just my two cents, but i appreciate you might have a valid reason.
I suppose that's fair -- we like to show how we would research a stock as a beginner with no knowledge. We do have other series planned like "Is it anti-fragile?" where we take stocks that we know through our checklists in short form videos. Check those out!
I think you need to use the product, then analyze the financials. If you aren't using the product first you're going to miss things. You might as well let a Wall street guy manage your money then, that's your edge.
They have the firepower to start a music label, no?
Possible!