Spotify has a unique opportunity to mark its territory. Time is running out in the sense that, with its cold economic results, part of its survival lies in its imminent flotation, of which there is still no closed date but, according to analysts, it can debut with a stock market valuation of 19,000 million euros. It will jump on the parquet floor in the first week of April, according to Bloomberg sources. A situation that, to achieve this, must undertake a series of reforms. Only by “cleaning” and “cleaning up” your powerful streaming music platform can your future be guaranteed.
Your present, for the moment, is particular. On the one hand, it has managed to convince seventy million people that due to its undoubted potential it is worth paying. At a general level, the firm accumulates more than 160 million registered accounts to a version that incorporates advertising insertions to finance itself. The payment for multimedia content, although it is something more and more usual, still faces an underlying problem inherited from a culture that emerged on the Internet, the “everything for free”. Something that prevents maintaining a company that does not produce content so you must, therefore, pay for it. And that is undoubtedly expensive.
Doubts of the return to the artist
The copyright in the music industry is that settled and regulated, but the incorporation of the thousands and thousands of catalogs that users are at your reach do not fall from the sky. It requires agreements and alliances that involve an investment. By the mere fact of placing the songs in the digital service the artist in question has not guaranteed a series of emoluments. In general, Spotify is limited to giving back to the big three of the sector, Sony, Warner and Universal. Something that prevents you from having the strength of Netflix, which in addition to offering content from third parties, produces and sells directly.
His business lies in reproductions, and that, faced with the infinite sea of existing proposals, is increasingly difficult for new creators. But even artists with large numbers behind may not favor the bill received by listening to their songs. A scenario that has caused stars like Taylor Swift were planted at the time and removed all his work platform. Retracted and, look where, is the most listened to artist.
On the contrary, and despite everything, the visibility and accessibility that gives music fans the consumption of content in the “cloud” has stimulated the interest of certain groups such as Metallica, which always, from the times of the extinct Napster, had declared themselves against these digital services. Because everyone assumes that the way to listen to music in the future will come through something like that.
I veto pirated accounts
One of the problems that the Swedish company that owns the service must solve is to reduce the presence of pirated accounts that what they do, as one can imagine, is to enlarge the monster of piracy. Profiles that, in effect, do not contribute or pay to access the advantages of these streaming services. The music platform has something gained for now. It is the most popular, far exceeds other rivals such as Apple Music (32 million subscribers) and has a lot of potential. Yes. But despite many, but many users, made the “trap” of leveraging third-party applications to overcome the limitations offered by the free version. That is to say, to eliminate for the time being the announcements and, beyond, to be able to skip the songs of individual way.
But doubts about its profitability are very strong that can lead to a financial meltdown of the first order. It is on the way to the parquet floor in the middle of a collapse in its average income (5.24 euros per month for each subscriber compared to 7.17 euros two years ago), and that has accelerated the steps to try luck on the stock market. Spotify monetizes its services through advertising and subscriptions, and its users are “highly committed”: those who paid increased up to 46% per year up to 2017 and 29% monthly active users, but accumulated losses by 1,500 million dollars, according to the information sent to its investors. The service entered 2,370 million dollars in 2015; 3,600 million in 2016 and 4,990 million in 2017.
Scams inside the platform
Done the law done the snare. In Spotify there have also been cases of scam when distributing fake content in order to obtain royalties. So, recently, it was revealed that a user of Spotify had won about 288,000 euros (235,000 euros to change) “stretching” the standards of this well-known streaming platform that in recent years has become the mirror to watch about the future of digital content distribution.
According to research published by «Music Business Worldwide», the «Soulful Music» list hides behind