What happens if spotify goes out of business

GrahamC March 5, PM. Interesting article. The music industry needs to adapt to technology. The music produces will often guilty us into thinking that the poor musicians make no money and in turn neither do they. Truth is they just make less money. A similar story is happening on YouTube, ad revenue is down and knowbody can make a living out of YouTube. An idea for Spotify, allow people to sponsor favirotie artists. So for me the big question is wether the music industry can accept that the industry is changing.

It would be interesting to see if this problem only sits with musicians and producers from yesterday years that have made millions out of record sales and newer artists are more accepting of streaming? If they do allow some sort of Patreon model, they could take a cut of that?

Garry Sevens March 28, AM. Spotify is the best subscription i had till now. Amazon, on the other hand, is perfect if you're a more mainstream music lover that enjoys a wide selection of pre-made playlists.

Amazon is also perfect if you own an Echo because it's simply a lot of fun to play with your music using just your voice. Even you can try Musconv to transfer your data on different services. The music industry swung the pendulum too far in reaction to the fear of piracy. Even before the crackdown on piracy, I'm pretty sure album sales were higher than they are now. There are various deterrents and tech means to deal with piracy. Also, nothing about Spotify is preventing piracy.

No downloads. Downloads are less and less necessary. Digital albums sales would then be permanent licenses. The idea of an album as a physical thing that you own doesn't work well for digital media. If people want physical copies, vinyl is still available. Kahle sees parallel preservation problems with other forms of digital media that exist on corporate platforms, such as ebooks and streaming-only movies. Read: The new rules of music snobbery.

I might be particularly neurotic about the future of my music library because I already lost it once before. But music libraries have been characterized by impermanence since the rise of on-demand listening some years ago, when people were using phonographs.

Read: How to listen to music. Sterne, the author of The Audible Past , notes that in the early 20th century, most listeners treated a record the way they might have treated a print magazine.

Even when people hold on to vinyl or a tape, or a CD , it can get lost or physically degrade. It can also get destroyed in a fire, which is what happened at a Universal Music Group archive in to thousands of original master recordings, most likely including some from musical titans such as Louis Armstrong, Ella Fitzgerald, and Bing Crosby. On Spotify, songs in my listening rotation seem to come and go more quickly than they did when my collection was in iTunes—a new release or curated playlist is constantly being recommended to me.

My experience on the app feels tilted toward newness, popularity, and recent listens, rather than browsing beloved tracks buried in my older playlists. In previous eras of listening, choosing what to spend money on made each musical acquisition feel weightier than it does now, when you can costlessly drag and drop a song into a playlist.

Making this strategy even riskier, exclusive content is no guarantee to grow market share. As the music streaming competition heats up, many other services are also focused on providing their users with exclusive content. Apple Music also features Beats One radio, which offers exclusive shows hosted by popular artists. The popular French streaming service, Deezer, has access to plenty of exclusive content as well. Deezer Originals offers users special extended play records, podcasts, and videos.

Tencent, which owns several streaming music services in China, offers original music and original video production. Tencent is also a partner in a music label with Sony Music Entertainment. Despite facing significant competition, declining ARPU, and a costly exclusive content strategy, Spotify is priced as if it will quickly improve profitability while increasing its revenue beyond what even Netflix generated over the TTM.

See the math behind this reverse DCF scenario. This assumption is highly unlikely but allows me to create best-case scenarios that demonstrate how high expectations embedded in the current valuation are.

Given the analysis above, the only plausible justification for SPOT trading at such a high price is the expectation that another firm will buy it. First, investors need to know that Spotify has large liabilities that make it more expensive than the accounting numbers would initially suggest.

After adjusting for all liabilities, I can model multiple purchase price scenarios. While I chose Disney, analysts can use just about any company to do the same analysis. Figures 9 and 10 show what I think Disney should pay for Spotify to ensure it does not destroy shareholder value. This scenario represents the minimum level of performance required not to destroy value.

Without significant increases in the margin or revenue growth assumed in this scenario, an acquisition of SPOT at its current price destroys significant shareholder value.