tag:blogger.com,1999:blog-8152901575140311047.post4516739848166890384..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Stream On: An IPO Valuation of Spotify!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8152901575140311047.post-70274026234856414102018-09-23T13:15:27.054-04:002018-09-23T13:15:27.054-04:00Hi Aswath, I am not sure you covered any entry ba...Hi Aswath, I am not sure you covered any entry barrier Spotify Posseses. Netflix for egs tomorrow could just announce it is giving music for half the cost. What ammunition would Spotify have to relatiate and survive to be able to stay relevant.Investment Bankerhttps://www.blogger.com/profile/07537079525107457480noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-81338891991904571172018-03-23T14:26:49.062-04:002018-03-23T14:26:49.062-04:00Hello Aswath, thank you so much for your analysis ...Hello Aswath, thank you so much for your analysis and making it available for everyone. Is it possible that the decrease in per user susbcription gain is because grow in latin america? as you stated has cheaper plans.<br /><br />Thank you for your time and energy that you put in every work.Walter Saqueta Melohttp://wsminversiones.com.arnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-39934653032264426272018-03-19T09:47:29.585-04:002018-03-19T09:47:29.585-04:00Would it make sense to value spotify along with th...Would it make sense to value spotify along with the "average" publishing company? If out of a content cost of X, a portion y% goes to the artist, and 1-y% to the Sonys, BMGs etc., one should model the fact that if the streaming model succeeds, then the publisher is doomed and can only survive by setting up competing platforms, as is happening with Netflix in the video streaming world.<br />I assume that in this scenario, the incumbents lose less revenues to competitors than they can reduce content costs by disintermediating publishers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-947899135323599052018-03-18T02:11:40.445-04:002018-03-18T02:11:40.445-04:00Thanks for this analysis; I am also interested in ...Thanks for this analysis; I am also interested in the possibilities regarding spotify's global growth. I see emerging economies with young populations and lots of cell phones as major consumers in the 2028 streaming music marketplace, especially as global wages stagnate. An affordable service that increases quality of life will be sustained while bigger life purchases are put off. We see this already in the millennials of the united states. <br /><br />I am glad you mentioned the 'x' factor - data - monetizing the data generated by the aggregate and unique user profiles is the holy grail that could make spotify a unique entertainment investment opportunity. This may be where spotify can connect with artists, and potentially disrupt the musical event ticketing market as well.Slow Rivernoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27851937660645393182018-03-17T15:26:11.766-04:002018-03-17T15:26:11.766-04:00Hello Sir,
Good piece of reading, thank you. Perso...Hello Sir,<br />Good piece of reading, thank you. Personally I think they can reach to even lower (c. 60% content cost levels) but I find revenue growth assmps quite a challenge. Also what 16Bn USD total figure for Global Music industry seems quite low?Sedat Aslannoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-7529840143317092462018-03-17T05:12:55.593-04:002018-03-17T05:12:55.593-04:00I think the largest Problem Spotify is facing are ...I think the largest Problem Spotify is facing are his owner. All of the three largest labels own shares of Spotify and increase the license costs over time. This should continue in future and Spotify will have problems in producing stable long term cash flows.<br /><br />Due to this Spotify is not a safe investment.Paulhttp://none.denoreply@blogger.com