Spotify Sued For $1.6B

Discussion in 'Streaming Services' started by chicks, Jan 3, 2018.

  1. chicks

    chicks Lunatic Member

    The Big Valley, CA
  2. zebra03

    zebra03 All Audio - NO BS

    West of Weedville
  3. botrytis

    botrytis Trying not to be a Small Speaker Hoarder Subscriber

    This is the issue with streaming - the record labels make their money what about the artists, songwriters, etc. Many get nothing from the streaming services. Until the Recording industry gets less greedy (which won't happen) Streaming will continue to have these problems.
    slow_jazz and Bill Ferris like this.
  4. Midwest Ear

    Midwest Ear New Member

    Chicago, IL
    Not the first nor the last time for Spotify. Be interested to watch where they settle on this one.
  5. E.Auer

    E.Auer Super Member

    Lobster Pot
    How much it impact's their bottom line remains to be seen.

    Lawsuits come and go, many are just a way to reach an agreement.

    Major corps get sued on the regular. It's part of doing business. And streaming is moving right along.

    This field is still developing.
    I think the key to this for the consumer is to enjoy what's out there atm, without getting too attached to it.

    +48V and RamblinE like this.
  6. +48V

    +48V hi-fi or die

    Tega Cay
    Mark Mulligan's salient take on Spotify's situation.
    "This is because demand far outstrips supply. The big institutional investors (investment banks, hedge funds, pension funds etc.) that now want a ‘position’ in the music business effectively only have Vivendi and Spotify as options (Sony Music is too small a portion of Sony Corp, while WMG is considered too small by bigger institutions).

    Investor demand exceeds supply

    The imbalance between supply and demand has been reflected in the grey market of private trading of Spotify stock. So, even if it has some weak earnings Spotify should hold onto much of its value, unless some big hedge funds decide to bet against Spotify, and decided to do so in a big way. In the longer term, if Spotify can execute well, three to five years from now we won’t be thinking of Spotify as a streaming company, but instead as a music platform. It will be a conduit for the plethora of music services and tools – ranging from data services, through e-commerce to services, that we currently largely identify with labels (artist promotion, label services, rights exploitation etc.). Streaming will generate more revenue than any of these, but all of these higher-margin revenue streams will help deliver Spotify profitability."

    I agree with his take on demand exceeding supply. The new stew economy of streaming services.

    See Full post (linked above) for more insight on the lawsuit and ramifications.
  7. AlTinkster92

    AlTinkster92 AK Subscriber Subscriber

    Neil Young strikes...opps I mean sues again....:rolleyes:
  8. slow_jazz

    slow_jazz Lunatic Member

    SE Michigan, Downriver....
    I really feel bad for song writers.

    Their getting hurt badly.

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