281–290 of 1001 posts
Looks like Benn Jordan's analysis on how Spotify will fail is slowly starting to materialize: https://www.youtube.com/watch?v=gDfNRWsMRsU
I'm a heavy user of spotify. Almost everyone I know uses it daily. I don't understand why they are not able to turn this much engagement into profit.
Because any growth in profits that spotify sees will quickly be eaten by music rights holders.
Spotify was a stand-out, almost no large tech company bought into cloud like they did, and everyone said the same thing: "It's not our core competence, it would require more people".
I get it, it's not sexy at all to deal in infrastructure, but I've seen their cloud bill and it's significantly higher than 1,600 peoples jobs, even with the discounts they got through committed use and even when considering the actual costs for infrastructure they need.
I'm sure there are inefficiencies everywhere, but this was the one that I talked about before and was talked down in a rather condescending tone. "Nobody got fired for buying cloud" is evidently a misnomer, because if you spend a lot of money and you don't have a lot of income: something has to give. And cloud has a lot more lock-in than most employees.
Can someone explain to me why a company that is about streaming mp3s needs 9500 employees? That just sounds extremely inefficient to me. They don't even have native desktop apps.
Earlier quoted context omitted.
Would love a tl;dw. How does he predict the fail will materialize?
Here's what Bard says: "The video starts by talking about how Spotify has become the dominant force in the music industry. In 2018, Spotify had over 200 million users and was paying out over $5 billion in royalties to artists. However, the video also points out that Spotify is not a very profitable company. In fact, Spotify has lost money every year since it was founded in 2006. So, how does Spotify make money? The a…
Unfortunately, that's an example of where A.I. didn't do a good job of extracting the key thesis of Benn Jordan's argument. Arguably, Benn Jordan himself didn't make it easy for the automatic semantic algorithm to summarize his main point because he's not stating it clearly enough and sprinkles in tangents throughout the presentation.
Basically, he says "Spotify Will Fail" because they created a flawed and unsustainable economic structure which happened because it signed lopsided licensing deals with the Big 3 Labels that leaves no significant money for smaller artists trying to make a living. Spotify had to "overpay" for the Big Labels song catalog to attract a large userbase so its current financial history has been a roundabout funneling of VC investment money (and most subscribers' money) into the Big 3 Labels rather than create a sustainable streaming business where more musicians can share in the pie.
The random sentences extracted by Bard AI hide Benn's core thesis.
The other sentences not extracted are the ones that support Benn's main argument: (1) the lopsided Sony licensing deal example, (2) the various other examples of VC money spent on subsidizing fundamentally unprofitable businesses structures for participants (Uber, $9.99 unlimited movies at theaters, etc).
Earlier quoted context omitted.
Well how about thinking stakeholders first and shareholders second? Firing your employees because you are incompetent leadership and management without good foresight should result in letting you go. Why the high compensation for leadership when it doesn‘t know what it does? Braun didn‘t get the design leader in the past because they threw out their team, they got there because they kept the team together. The more y…
Nonsense. You didn't address my point... Tech is disproportionately affected by rate changes (both inflation and loans/bonds), as it's the highest growth sector. High growth businesses are investing heavily in infrastructure and as such are also highly leveraged.
Who planed and executed a strategy like this and why isn‘t it done in a way to not get as much employees which would lead into them getting laid off?
Why getting cheap money without taking into account that the situation is different in 5 years?
I couldn’t care less that growth businesses run into this situation. Then don‘t grow it so fast!
People are getting fired across so many businesses. It appears unlikely they will get another job soon. The situation leads to health problems and has ramifications for people. Fucking management can do whatever they want. They still get highly compensated.
Earlier quoted context omitted.
I'm a heavy user of spotify. Almost everyone I know uses it daily. I don't understand why they are not able to turn this much engagement into profit.
> Almost everyone I know uses it daily. Counterpoint: almost no one I know uses it. It was fun at first but became boring fast, a bit like Netflix. If I want to listen to music I use youtube.
These services are global with hundreds of millions of users or more. There’s nothing useful to be extrapolated from the usage patterns of yourself and a handful of friends.
(Personally I only listen to Amiga MODs and watch 8mm home movies of my mother while whistling the theme from “Psycho”.)
Looks like Benn Jordan's analysis on how Spotify will fail is slowly starting to materialize: https://www.youtube.com/watch?v=gDfNRWsMRsU
I'm a heavy user of spotify. Almost everyone I know uses it daily. I don't understand why they are not able to turn this much engagement into profit.
This isn't about rising costs though, this is about the labels and shareholders being greedy and wanting an even bigger piece of the cake that is already massive. Meanwhile artists are getting paid next to nothing and now even workers are getting the short end of the stick.
Source? Because losing money every year does not seem sustainable.
https://www.macrotrends.net/stocks/charts/SPOT/spotify-techn...
Earlier quoted context omitted.
Hasn't inflation gone down to ~3%?
Has it? Nothing in my life except gasoline has gotten any cheaper. Edit: I misread the comment. I am aware of the difference between rates and absolutes.
Low inflation rate means stuff get more expensive slower. It's still getting more expensive.