Spotify’s greatest strength is its market share. Podcasts could ultimately work out well, however I still see music as the main attraction and thus it’s necessary to establish a more fair revenue split with the record labels. However, there it’s still less than certain how Spotify will ultimately monetize this revenue stream.Īs things stand now, Spotify has paid a lot for exclusive rights to superstar podcasters such as Joe Rogan and ended up in a bunch of political hot water as a result. This is potentially a highly-interesting area for the company. In the meantime, Spotify is trying other avenues of monetization, such as becoming a hub for podcasts. So far, however, there’s not a great deal of concrete evidence to support that assertion. I believe over time that Spotify will be able to negotiate better deals with the labels. Historically, Spotify has struggled to ever cross the threshold into consistent profitability given that it pays out so much of its revenues to its content providers. The record labels take the majority of streaming revenues, leaving just a smaller piece for Spotify itself. However, it still hasn’t been able to get its profit margins up. On the subscription side, sure Spotify is the dominant player. And, needless to say, streaming music doesn’t have the same hyperlocal advertising reach that a city’s radio station does.ħ Healthcare Stocks to Buy for the Long Term ![]() That’s not as glamorous as other forms of marketing. Many media firms view streaming audio as an extension of radio. ![]() There’s a perception that the ad market is a bit of a difficult one for the company. ![]() One issue for Spotify is that it has stagnated to some degree in terms of generating revenue.
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