Live data from Hacker News

Spotify files for its IPO

axios.com

71–80 of 218 posts

Re: Spotify files for its IPO

#71
post #47

I hope they do get funding so they can support messaging again, one of the reasons I came back to Spotify was for one of my most beloved features. Sending tracks to friends within the application, but then found out it was removed. I still subscribe to Spotify, but the "copy link" send to friend via text is so much worse than being able to just message within.

Yes, I would like to see more social features that aren't tied to Facebook. I know it's not their core competency, but it's odd that the Friends feature requires FB even though they support "standard" non-FB user accounts. And a timeline-esque view of who's been listening to what at-a-glance would be neat.

Maybe this isn't exactly what you were thinking but I wanted to get some social listening features added to Spotify as well so I built JQBX: https://www.jqbx.fm .

Maybe it'll scratch your itch, figured I'd share.

Re: Spotify files for its IPO

#72
post #60

Earlier quoted context omitted.

I think this has a good chance of being a good long-term investment for one simple reason. Spotify has something that few companies have but all dream of: pricing power. The other week, my kids were watching TV and my wife and I were in the kitchen and one of them yelled out, "Mom, something popped up on Netflix saying the price is going up. What should I do?" My wife and I said the same thing instantly: "Just hit ok…

Why wouldn't everyone just go to Apple/Google Music if Spotify raised their prices? None of them have exclusive content or features that rival Netflix's exclusive library, I don't see why Spotify have any meaningful pricing power. I'm one of those people who hit OK this year when Netflix raised their price, but I'll immediately leave Spotify if they raise their prices and the competition don't - they have nothing sti…

It just works -- pretty much exactly the way I want it to. I've been a Spotify user for 5 years, have occasionally tried competing services, but I've never cancelled my subscription. Even if they'd double the price, I wouldn't cancel my account.

Re: Spotify files for its IPO

#73
post #59

Earlier quoted context omitted.

This is the same problem Netflix & Amazon have been successful in combating. The answer is to become a content owner by competing with the big labels directly. All Spotify needs to push the big labels back on their heels is to sign a few top 40 artists of their own. I might be wrong but I remember reading something like 90%+ of streams on music services are of songs currently on the charts. Capture the popular cultur…

It’s really not though because music is a loss leader for amazon, apple and google, but it is spotify’s entire business. The only other major competitors out there are either in major cahoots with the big 3 (tidal, pandora) or gone (soundcloud, grooveshark, rdio). Netflix has this problem too but they “solved” it by making their own content. Amazon are Google are doing the same thing. That’s the direction I see Spoti…

I'm confused. I think you're saying the same thing as the post you're replying to. The direction would be to own (or "create") the content. In other words, Justin Timberlake or someone with equal clout moves from Sony to Spotify Records (for lack of a better name).

Re: Spotify files for its IPO

#74
post #46

I don't think this is a good long term investment. Disclaimer: I worked for a Spotify competitor in the past, so i have a pretty solid understanding of how the business works. I think it is a bad investment for one simple reason: Spotify purchases its main product (music) from a oligopoly. I'd estimate that 95%+ of the tracks streamed (by total playtime) are from one of the 3 major music labels: Universal, Sony or Wa…

> And Spotify has zero negotiation power here

really? with their endless amount of listener history and preference data. IMHO Spotify has gained the upper hand.

Re: Spotify files for its IPO

#75

Earlier quoted context omitted.

Why wouldn't everyone just go to Apple/Google Music if Spotify raised their prices? None of them have exclusive content or features that rival Netflix's exclusive library, I don't see why Spotify have any meaningful pricing power. I'm one of those people who hit OK this year when Netflix raised their price, but I'll immediately leave Spotify if they raise their prices and the competition don't - they have nothing sti…

It just works -- pretty much exactly the way I want it to. I've been a Spotify user for 5 years, have occasionally tried competing services, but I've never cancelled my subscription. Even if they'd double the price, I wouldn't cancel my account.

I had a six month trial of Google Music and YouTube Red, thinking I'd go to that instead of Spotify.

I canceled the Google one because changing over was too much effort.

Re: Spotify files for its IPO

#76
Anyone feel worried about an environment where your competitor products are basically all propped up by big companies who couldn't care less whether they made money as long as they fly low of the anti-competitive radar? Of course your lemonade stand can sell lemonade for a cent a cup if your rich daddy will pay the other 99 cent from his pocket.

For eg. Spotify had to lower their price from $10 per month to $15 per month for 6 (family plan) because Google Play Music offered that price point along with YouTube Red. Of course, neither Google nor Apple need to make money from their music services. Funnily or sadly enough this is true for almost everything Google does other than Ads.

Most people would agree that Spotify is a better music player while each of Google's music apps are bad in different ways, but online subscription services are a market where people want to nickel and dime.

Re: Spotify files for its IPO

#77
post #59

Earlier quoted context omitted.

This is the same problem Netflix & Amazon have been successful in combating. The answer is to become a content owner by competing with the big labels directly. All Spotify needs to push the big labels back on their heels is to sign a few top 40 artists of their own. I might be wrong but I remember reading something like 90%+ of streams on music services are of songs currently on the charts. Capture the popular cultur…

It’s really not though because music is a loss leader for amazon, apple and google, but it is spotify’s entire business. The only other major competitors out there are either in major cahoots with the big 3 (tidal, pandora) or gone (soundcloud, grooveshark, rdio). Netflix has this problem too but they “solved” it by making their own content. Amazon are Google are doing the same thing. That’s the direction I see Spoti…

It wouldn’t surprise me if Apple not being in that game yet is because of their long standing agreement with Apple Records (the Beatle’s label), who challenged their trademark a while back when they started selling music. I suspect getting into directly signing artists would breach whatever agreement was made and leave Apple open to a huge trademark suit.

Re: Spotify files for its IPO

#78
post #59

Earlier quoted context omitted.

This is the same problem Netflix & Amazon have been successful in combating. The answer is to become a content owner by competing with the big labels directly. All Spotify needs to push the big labels back on their heels is to sign a few top 40 artists of their own. I might be wrong but I remember reading something like 90%+ of streams on music services are of songs currently on the charts. Capture the popular cultur…

It’s really not though because music is a loss leader for amazon, apple and google, but it is spotify’s entire business. The only other major competitors out there are either in major cahoots with the big 3 (tidal, pandora) or gone (soundcloud, grooveshark, rdio). Netflix has this problem too but they “solved” it by making their own content. Amazon are Google are doing the same thing. That’s the direction I see Spoti…

> or gone (soundcloud, grooveshark, rdio)

I can't speak for grooveshark or rdio, but as far as I know soundcloud still exists. I just added a song there and listened to some other stuff a week ago. Did I miss something?

Re: Spotify files for its IPO

#79
post #46

I don't think this is a good long term investment. Disclaimer: I worked for a Spotify competitor in the past, so i have a pretty solid understanding of how the business works. I think it is a bad investment for one simple reason: Spotify purchases its main product (music) from a oligopoly. I'd estimate that 95%+ of the tracks streamed (by total playtime) are from one of the 3 major music labels: Universal, Sony or Wa…

> And Spotify has zero negotiation power here really? with their endless amount of listener history and preference data. IMHO Spotify has gained the upper hand.

Google and Apple have that too -- YouTube and iTunes have been around longer than Spotify, and likely have similar data sets.

Re: Spotify files for its IPO

#80
post #60

Earlier quoted context omitted.

I think this has a good chance of being a good long-term investment for one simple reason. Spotify has something that few companies have but all dream of: pricing power. The other week, my kids were watching TV and my wife and I were in the kitchen and one of them yelled out, "Mom, something popped up on Netflix saying the price is going up. What should I do?" My wife and I said the same thing instantly: "Just hit ok…

Ignorant question (I'm not very familiar with the music business): what do the labels provide to the artists - why do they need to sign with Time Warner/Sony/etc at all, rather than just releasing their music to all distribution channels (Spotify/Apple Music/etc) themselves? I understand for smaller artists the labels can help provide advertising to them, but the larger, well-known stars you mention seem like they sh…

PR and lots of logistical support. Much of that logistical support is also drawbridge over a moat that makes exposure on a large scale basically impossible without access and backing.

The idea that a person can create and maintain a fan base of millions without all that is attractive but infeasible.

Post reply on HN