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Spotify Examined: What Their Report Really Says

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Re: Spotify Examined: What Their Report Really Says

#21
post #6
post #4

>We're set to soon see growth of physical sales eclipse the contraction of physical sales completely. Which means the graph, if expanded a bit, might look like this: It goes up a little bit! I don't understand. To me, the change in physical sales appears to be asymptotically approaching 0. Why assume it suddenly goes positive and then use that guess to make Spotify look deceptive? >Spotify is playing a little fast an…

The projection graph does assume flat physical sales. But it's a stacked chart. Paying to paying is not completely unreasonable, but imagine an airline using the average fares of its Airline Club members (who are often flying first class) vs the fares of average Americans. It's easy to inflate the number when the group of people you're talking about are rich and predisposed to being more engaged. edit to your edit: I…

Yeah, there is also a bit of this at play when Spotify talks about what they pay artists. They say they pay an average of 70% of revenues, but they don't explain that major labels get way better rates per stream, not just because of the volume of streams. It would be akin to Wal Mart boasting an average $22 per hour salary for all workers because their CEO makes $100M a year while all others make minimum wage.

Re: Spotify Examined: What Their Report Really Says

#22
post #18
post #15

> They don't pay per play, so most of your money goes to popular artists no matter how indie your listening habits are. That's a misleading sentence, it implies that your listening choices do not affect how much money goes to indie artists, which is not true. The proportion that each artist gets depends on how many plays they have relative to the plays of all artists in total in a particular time period, which is a p…

I may be appealing to emotion there, but it's certainly not misleading (nor is your claim about Satanists, though I think the proportion going to them is very very small). It's true! Do you disagree that it would be better for the $10/mo a subscriber pays to go only to the artists they listen to?

If Spotify subscribers listen to more or less the same number of songs per month then their money does go to the artists they listen to. Your money only goes to artists you don't like if you listen to fewer songs than average.

Re: Spotify Examined: What Their Report Really Says

#23
post #6

Earlier quoted context omitted.

The projection graph does assume flat physical sales. But it's a stacked chart. Paying to paying is not completely unreasonable, but imagine an airline using the average fares of its Airline Club members (who are often flying first class) vs the fares of average Americans. It's easy to inflate the number when the group of people you're talking about are rich and predisposed to being more engaged. edit to your edit: I…

Yeah, there is also a bit of this at play when Spotify talks about what they pay artists. They say they pay an average of 70% of revenues, but they don't explain that major labels get way better rates per stream, not just because of the volume of streams. It would be akin to Wal Mart boasting an average $22 per hour salary for all workers because their CEO makes $100M a year while all others make minimum wage.

That doesn't really square with Spotify's own explanation where equal market share should get equal payout: http://www.spotifyartists.com/spotify-explained/#royalties-i...

Re: Spotify Examined: What Their Report Really Says

#24
post #6
post #4

>We're set to soon see growth of physical sales eclipse the contraction of physical sales completely. Which means the graph, if expanded a bit, might look like this: It goes up a little bit! I don't understand. To me, the change in physical sales appears to be asymptotically approaching 0. Why assume it suddenly goes positive and then use that guess to make Spotify look deceptive? >Spotify is playing a little fast an…

The projection graph does assume flat physical sales. But it's a stacked chart. Paying to paying is not completely unreasonable, but imagine an airline using the average fares of its Airline Club members (who are often flying first class) vs the fares of average Americans. It's easy to inflate the number when the group of people you're talking about are rich and predisposed to being more engaged. edit to your edit: I…

In college I knew some people who bought music on iTunes and then bought the same music in vinyls. I wouldn't expect an iTunes->Spotify switch to change their vinyl habit.

Re: Spotify Examined: What Their Report Really Says

#25
post #18
post #15

> They don't pay per play, so most of your money goes to popular artists no matter how indie your listening habits are. That's a misleading sentence, it implies that your listening choices do not affect how much money goes to indie artists, which is not true. The proportion that each artist gets depends on how many plays they have relative to the plays of all artists in total in a particular time period, which is a p…

I may be appealing to emotion there, but it's certainly not misleading (nor is your claim about Satanists, though I think the proportion going to them is very very small). It's true! Do you disagree that it would be better for the $10/mo a subscriber pays to go only to the artists they listen to?

"Your" $10 does only go to the artists you listen to. If you shift your listening entirely from one artist to another, the artist you left will see their revenue drop by $7 and the artist you adopt will see their revenue increase by $7.

Re: Spotify Examined: What Their Report Really Says

#26
Awesome Post Aston. You know, you can most year-to-year sales data directly from RIAA. You're supposed to pay for the data but usually you can find someone posting them.

Regarding that, I'm not quite as optimistic as your projections on digital sales. I don't think it trends up forever. I don't have a crystal ball, but I have a feeling that downloads sales will actually peak in the next 1-3 years. At which point, the record industry will REALLY start freaking out (again).

Re: Spotify Examined: What Their Report Really Says

#27
post #11
post #8

>A Spotify Premium user isn't the average music fan. Disagree I consider myself the average music fan and the reason I like this service is that I have all my music with me where ever I go, even if its not my device. Other people I know who use Spotify are mostly average the other half isnt. Spotify has converted me from a pirate in my younger days to a paid music subscriber.

Your use case is why I have iTunes Match. It's finally not buggy, I love it so much it's the reason I got an iPad mini yesterday instead of a nexus 7, and that was a hard decision.

iTunes Match would have been a nice feature 5 years ago but there's just no need with the final catching on of streaming. There's still a handful of music not available on Spotify but I find listening to my own collection of songs to be pretty miserable.

Re: Spotify Examined: What Their Report Really Says

#28
post #2

1. "iTunes is also the preferred tool for listening to pirated music, which generates nothing for artists." Spotify has paid out $1B in 9 years. iTunes is paying out over $1B PER QUARTER. [1] 2. Spotify also has an ARPU cap ($120/yr) - Not only do none of their competitors have this, but it is likely others will find ways to increase APRU (better video CPMs or iTunes exclusives are just a few options). This will like…

Spotify started 5 years ago not 9 plus most of its revenue came last year.

Re: Spotify Examined: What Their Report Really Says

#29
One thing that has always surprised me is just how small the entire music industry is.

The entire recorded music industry was $16.5 billion in 2012 (According to the IFPI). To put that in perspective... - $364b: The TV industry (2009) - $557b: Our spending on the war in Afghanistan - $523b: The amount the world spends on beer each year (excluding other types of booze)

The point here is that the cultural value of recorded music is (I believe) not reflected in it's market footprint. For better or for worse (mostly for better I think) music is cheap.

Re: Spotify Examined: What Their Report Really Says

#30

One thing that has always surprised me is just how small the entire music industry is. The entire recorded music industry was $16.5 billion in 2012 (According to the IFPI). To put that in perspective... - $364b: The TV industry (2009) - $557b: Our spending on the war in Afghanistan - $523b: The amount the world spends on beer each year (excluding other types of booze) The point here is that the cultural value of reco…

also, for comparison: http://www.informationisbeautiful.net/visualizations/billion...
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