This is a interesting article on Spotify. I never much cared for streaming music companies before but Spotify might now be worth paying attention to because the music industry seems to be changing drastically and Spotify seems to be right in the middle of it. Record labels are starting to become disintermediated by Spotify, while Spotify now has eyes on aggressively vertically integrating into concerts, merchandise, promotion and data analytics.
By Jon Markman, thestreet.com:
The music streaming company is set to take the place of record labels as it moves aggressively to vertically integrate into concerts, merchandise, promotion and data analytics.
As a technology business, Spotify (SPOT - Get Report) is doing a lot of things right. It’s building scale with a new business model based on data analytics and an indelible brand.
Yet the Swedish media streamer is more often noted for its shortcomings. Although it was founded in 2006, the business is still unprofitable. And larger technology companies are entering the marketplace.
These factors have kept me on the sidelines, until now.