![]() ![]() And I'd say it's - some labels are more invested than others. We have a lot of services on the marketing side that are working. So ironically, if they were revenue products, our revenue would actually grow, could actually be probably a lot faster, but it's just not the way the accounting works. They're actually our contra cost to some of the other payments we have, so they actually benefited gross margin, even though they don't show up in revenue. CFO Vogel repeated that marketplace tools and services are used by labels and he made clarifications with respect to the accounting:Īnd so they're actually not revenue. Evercore's Mark Mahaney mentioned the 2021 figure of 160 million. At the September Evercore Conference, CFO Paul Vogel talked about the two-sided marketplace being the vast majority of the increase in gross margin for the core music business. No longer just a music streamer, Spotify has morphed into a marketing arm for labels with their two-sided marketplace system. My thesis is that Spotify will continue to evolve in the audio space.Īt the time of this writing, €1 is fairly close to $1 the exchange rate is €1 for $1.02. Spotify continues to evolve on the music side but they are also adapting to give consumers benefits with other audio verticals such as podcasts and audiobooks. Piracy hurt the labels deeply but Spotify ( NYSE: SPOT) has led the charge to help labels restore revenue through streaming. The music industry has been forced to evolve over the years. Drew Angerer/Getty Images News Introduction
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