When does Spotify pay for the licensing fee? Before the artist uploads his song, do they sign a contract with him and pay him? Or should they pay this fee to the record company?
Hi Teres. The platform costs are the costs of running the Spotify platform. If you say that a song is 5MB in size and you have 100 million users you are streaming 500 million MB/minute. Plus you need space to store all the songs. Plus you need edge servers so consumers don't wait for the songs to load. Plus you need the app and website to work seamlessly plus plus plus....
How covid pandemy changed future plans for Sportify? do you thing Spotify should focus for future more in postcads, news, cooking, music, karaokes? during this pandemic it has showed a potential opportunities to increase and exploit this market, increasing subscriptions. This would allow Sportify gains independence with their own content, reducing dependency with the big labels. Beside, a much more collaborative platform, users want to share and collaborate in new ways. What do you think?
If you have money it is (relatively easy) to create content as Netflix has shown. What the big labels don't have is a platform and that is where Spotify's competitive advantage lies. Plus, how does it help Spotify if it becomes more like them? Finally - where is the balance of power? At the moment it is with Spotify. Diversification into all forms of audio entertainment could work - look at how Pepsi did the same to Coke in the snack food wars
Amazing explanation! Any way I could get the document in the video?
When does Spotify pay for the licensing fee? Before the artist uploads his song, do they sign a contract with him and pay him? Or should they pay this fee to the record company?
Very informative thank you
Glad it was helpful!
Can you explain the Platform Costs more in detail, please?
Hi Teres. The platform costs are the costs of running the Spotify platform. If you say that a song is 5MB in size and you have 100 million users you are streaming 500 million MB/minute. Plus you need space to store all the songs. Plus you need edge servers so consumers don't wait for the songs to load. Plus you need the app and website to work seamlessly plus plus plus....
@@DenisOakleyStrategyConsulting Thanks a lot
great explanation
Glad it was helpful!
How covid pandemy changed future plans for Sportify? do you thing Spotify should focus for future more in postcads, news, cooking, music, karaokes? during this pandemic it has showed a potential opportunities to increase and exploit this market, increasing subscriptions. This would allow Sportify gains independence with their own content, reducing dependency with the big labels. Beside, a much more collaborative platform, users want to share and collaborate in new ways. What do you think?
If you have money it is (relatively easy) to create content as Netflix has shown. What the big labels don't have is a platform and that is where Spotify's competitive advantage lies. Plus, how does it help Spotify if it becomes more like them? Finally - where is the balance of power? At the moment it is with Spotify. Diversification into all forms of audio entertainment could work - look at how Pepsi did the same to Coke in the snack food wars