Understanding The Broken Business of Spotify
Spotify is a $50B+ company, but they have never turned a profit. But why does Spotify keep losing money? The answer to this question becomes more clear when we take a deeper look at Spotify's business model. The current music streaming industry has become very competitive. Adding on to this is the fact that these services have to work with a very consolidated music recording industry, which is run by a powerful oligipoly of three companies. All these facts make it difficult for Spotify to turn a profit, despite the fact that the company has over 530 million active monthly users.
#spotify #spotifyeconomics #whyspotifykeepslosingmoney
Пікірлер: 1 200
No one in the right mind uses Amazon music
@garv04
28 күн бұрын
True
@Buxenwolf
27 күн бұрын
It’s horrible 1) already playing for prime, you need to pay more for the full featured music service 2) the UI isn’t great
@dammmmyy
27 күн бұрын
My teacher does for some reason
@Buxenwolf
27 күн бұрын
Paying *
@Funfactstoblowyourmind
27 күн бұрын
Incorrect i use it and pay for it
Finally KZread pushing quality videos instead of videos from big channels
@MBA-Maven
Ай бұрын
Thank you for your support! I'm glad you enjoyed the video.
@minoo1160
Ай бұрын
They push what you watch
@dorankim9654
Ай бұрын
I didnt know that this video is from small channel at all, just notice after reading this comment. Well done to the creator 🎉
@WhateverWhenever888
Ай бұрын
@@minoo1160 no…
@FastGuy1
Ай бұрын
Recently I just started getting so many videos recommended from small channels too
I can't understand how Spotify has created a business model where everyone feels as though they're losing out. Artists don't make enough money. Spotify doesn't make enough money. Users are bombarded with ads.
@rho992
Ай бұрын
its human nature.. nothing will ever be enough to anyone after a point
@MBA-Maven
Ай бұрын
I think you raise a very interesting point. While I personally think that paying users get value from Spotify (I'd rather pay Spotify's monthly subscription fee than pay to download each song), some of these tech-based disruptors seem to have created a system in which everyone involved loses. This is perhaps best exemplified with the food-based delivery apps. These apps are not profitable, their delivery workers (contractors) do not have full employment benefits and are not paid very well, and fees are constantly increasing, lowering the customer's value. It's an industry I will be making a video on to go into more detail.
@iQuack
Ай бұрын
You know damn well where the money is going. Taylor Swift needs a 3rd private jet, Drake needs a second mega yacht and I can PROMISE YOU the big 3 record labels are making bank too.
@razrv3lc
Ай бұрын
@@iQuackTaylor Swift has been vocal about how little she gets from Spotify and iirc she pulled all her music from Spotify once over it
@iQuack
Ай бұрын
@@razrv3lc damn that’s crazy coming from a literal billionaire… Spotify should really pay her more idk how she can afford to eat!
Audio Quality : Apple music Playlists : Spotify Suggestion / Vast library : KZread music
@TheYaq
29 күн бұрын
Oh yeah auto suggesion is so good on yt music
@kaillou7557
28 күн бұрын
i feel the same exact way! youtube has recommended me so many good songs ive never heard before while spotify keeps playing the same 15 songs ive heard before, it feels like Spotify keeps me in a bubble of the same songs. its hard to find new music in my favorite genre on Spotify, when i switched to youtube music, the variety was so beautiful to see and i actually have fun listening, the algorithm is 🤌🏼 chefs kiss
@makalacc
28 күн бұрын
It's a shame that YT Music doesn't follow the same algorithms like regular YT. Especially when it comes to Balkan countries, you are listening to a croatian song and suddenly next one is albanian and one after it is russian, not even the same genre.
@saurabhnehe6862
28 күн бұрын
@@makalacc in my case apple music does this similar thing
@NotMelob-dm4md
28 күн бұрын
@@makalacc For me its even better like this. I can listen to anything
Spotify’s new algorithm sucks. It used to allow you to discover new songs and artists daily, but now it loops over the same 10 or so songs constantly.
@sirmalloy
13 күн бұрын
I thought I was the only one who noticed this Even when you try going to a song radio it will keep showing the same songs over and over
@sophiaglover1875
11 күн бұрын
Literally like i love mitski but i don't think liquid smooth belongs in a playlist based on something stupid by frank sinatra 💀
@enesbatuhan7833
11 күн бұрын
@@sophiaglover1875 I feel like they generate radios based on what other people who listen to that specific song also listen to instead of the actual genre. it usually works fine, but if that specific song is used in a popular media platform like TikTok or as a soundtrack for a movie, it distorts the result significantly
@jon9134
11 күн бұрын
I've noticed this for a while as well. I think they are pushing certain 'chosen' artist and podcasts to be seen and popularized.
@thecreativemastermin
10 күн бұрын
Yep. If you don't pay, this might happen..
This video is proof why competition is important. Music streaming is probably the only subscription service where consumers feel they get value for their money. Take the middleman companies out of the equation and there’s planet of money for the artists to make money and not feel screwed and the consumer gets value for what they pay for. The streamers and the labels have just placed themselves at glorified middlemen and artists can’t get paid their worth because of it
@Kkugnbbc
Ай бұрын
It’s the free market though, especially nowadays you don’t need records or labels to get on Spotify or whatnot. Artists think that they will get more negotiating power and more growth potential by partnering with these companies. He mentioned this in the start of the video when he said Spotify couldn’t afford any of them pulling their catalogs.
@chemicalfrankie1030
Ай бұрын
120 usd per year without owning a single song? Where the value for consumers would be exactly?
@fahimhussain1918
Ай бұрын
@@chemicalfrankie1030120 usd per year vs buying the digital copies of whatever songs you’ll enjoy over the rest of your lifetime
@jarencascino7604
Ай бұрын
What’s weird about this is that a more competitive market (music streaming) ends up actually hurting more than helping. Spotify doesnt stand a chance because amazon and apple are willing to take a loss.
@ArchThaBoss
Ай бұрын
@@chemicalfrankie1030 different people value different things. The people who listen to music the most don’t have $10 to spend for every new album that comes out so they will settle paying $10 for an all you can eat buffet.
i’ve had Spotify premium for years and tried apple music thinking it was going to be smoother with my iPhone. I’m so used to Spotify and found Apple music annoying, confusing i just didn’t like it.
@fall3n834
Ай бұрын
Dude I feel like same way about Spotify it’s so icky to me
@fall3n834
Ай бұрын
And Apple Music is so much better for your iPhone 😭
@sal_alaa
Ай бұрын
Yesss it’s so much easier! Plus i travel a lot so I need to (forced to) change my app store country/region frequently. every time i do that, my entire apple music catalogue is deleted with absolutely no way to recover any of it. I then reinstalled spotify, which I’d used last in middle school, and I found all my playlists exactly as they were, completely untouched and unchanged. Never going back to apple music even if they offer to pay me.
@mrsneakpeak8778
Ай бұрын
I have a fold 5 and use apple music lol it's just better in my opinion. KZread music is just a joke and Spotify isjust so odd to me lol
@nelmvn
Ай бұрын
I know Apple Music algorithm is much better than Spotify but I hate their playlists.
What I don't understand is how despite their business only focusing on music, they still don't offer hi-fi plans like Apple or Amazon. Could even be the answer to that price increase they've been chasing for a while.
@MBA-Maven
Ай бұрын
That's a really interesting point. Although Spotify mentioned plans of introducing HiFi lossless streaming back in 2021, it seems like these plans have vanished. I think Spotify has not prioritised this feature simply because a majority of its users are just casual listeners who would simply not notice this difference. So Spotify's thinking might be something along the lines of why focus on this when we have more urgent matters to deal with. Although, as you mentioned, there is a chance that this new feature might be included in a new high-end subscription tier that it's rumoured the company is looking to introduce.
@summertime_magic
Ай бұрын
that would just add to the expenses lol
@lance_374
Ай бұрын
@@MBA-Maventhe issue with a higher price for lossless is that competitors offer lossless at the base price.
@orlandolacrue2186
Ай бұрын
@@MBA-Maven The only issue is that Apple doesn't charge anything extra for Hi-Fi/lossless.
@RLang03
Ай бұрын
@@MBA-Maventhe issue was that Apple and Amazon included it for free so Spotify couldn’t justify charging for it
My only real gripe with Spotify, as a long time premium member, is the insane lack of a true shuffle. I'm led to believe that this is also an issue on other platforms, but if you have a sufficiently big playlist, you'll soon learn that shuffle is NOT random. It tries to be cute. It tried to play adjacent music in sequence. However, I LIKE a true random shuffle. I want to hear Black Sabbath and then Prince. Not Black Sabbath, and then Dio (who was in Black Sabbath), and then Ozzy solo, and then Heaven & Hell, all of which have a singular tether. For years it's done this, and it is insane to me. Nobody asked for it so....why??
@faizzack
Ай бұрын
Isn't smart shuffle solves the problem?
@oxidisers
Ай бұрын
if you’re on PC then i’d suggest looking into spicetify. i’ve been using for around a year now and the number of features that are added is crazy - including a smart shuffle
@oxidisers
Ай бұрын
true shuffle* not smart shuffle
@bzuidgeest
Ай бұрын
The reason is simple and known. If Spotify and others create a true random shuffle, which they initially did, they get angry users. People forget that in a random shuffle in a list the change of playing the same song twice or close together is high. Just like the change some songs not being played are high. Or to get multiple similar songs or multiple with very different tempos So Spotify and the other services all adjusted their shuffles to act like what most perceive as random. But every number in the list gets played, not close together, similar styles etc etc. For most users this flawed random with all its tricks feels more random. And yes many people asked for it.
@StarcraftForTheSwarm
Ай бұрын
@@bzuidgeest That is so fucking dumb
1:09 This graph is incredibly misleading. Should be to scale
@Brownboy42069
14 күн бұрын
Seriously that is one of the worst graphs I’ve ever seen
@foggy_oi4
14 күн бұрын
It is not confusing at all if you understand what net loss is. Everything is fine with the scale
@shishidoseijuro7770
14 күн бұрын
@@foggy_oi4No its just a bad scale, stop trying to be different.
@DNOPLAYSGAMES
14 күн бұрын
@@foggy_oi4Clown comment of the day
@krishnaraj3989
14 күн бұрын
True!
IDK how it is in other markets, but in the country I live, Spotify ads are basically (and almost uniquely) promoting you to buy a Premium membership. Meaning they're completely missing out on ad-revenue in at least some territories. Maybe this could make up for some of their losses, although I doubt it will completely make up for it.
@WestCoastAce27
Күн бұрын
That means advertisers in your country know it’s not worth the Spotify (probably inflated) asking price to place an ad.
@kaidanalenko5222
12 сағат бұрын
Mexico?
Good video from a small channel
@rawlvee
Ай бұрын
ai
@MBA-Maven
Ай бұрын
Glad you enjoyed it!
@MBA-Maven
Ай бұрын
No, none of our videos are AI generated. Meaning that all our content is 100% authentic and human generated.
@martinketchum
Ай бұрын
keep cooking, looking forward to smaller companies topics too on top of the big ones
@MBA-Maven
Ай бұрын
Thank you! I had to focus on large companies first to help me build an audience (as more well known companies tend to attract more viewers). But videos on smaller companies are definitely coming!
Currently, Spotify don't have a set "pay per stream" rate. Instead, it varies greatly depending on whether or not the Spotify user is Free or Premium, which region they're listening from (different regions have different payment modes on Spotify), when it's being streamed (payment also varies on Spotify from day to day) and a variety of additional factors. For example, a Free stream pays much less than a Premium stream. Also, the same person streaming the same track multiple times is worth much less than if different Spotify users stream the same song the same amount of times. If you want to calculate an avarage taking into account all of information, it is around 0,0009 USD per stream.
@bzuidgeest
Ай бұрын
That sounds bad, but really isn't. It costs nothing to distribute the sound and there is so much of it, one artist more or less hardly matters. Even swift left for a while and then came back, Spotify didn't suffer, there was so much else. Artists should learn their stuff has lost its value outside live performances. We even have Ai now that creates new hit songs. Artists should get jobs. Maybe an AI will replace me at some point, you can't stop progress. Sound is easy.
@burrybondz225
24 күн бұрын
@@bzuidgeest no, she came back because she got exactly what she wanted.
@actualzafra
13 күн бұрын
"artists should get jobs" drunk uncle is at it again.
KZread music is the only one anyone needs. It comes with no freaking ads on youtube. Hard to beat that.
@jonathancastro8487
Ай бұрын
EXACTLY!!!
@NitroCorrupted
Ай бұрын
To get no ads on KZread you have to buy KZread premium which is 14 dollars a month.
@jonathancastro8487
Ай бұрын
@@NitroCorrupted For real? In my country is 8 dollars a month
@setywashere
Ай бұрын
3,99 USD in my country 😆
@nicktasteless360
Ай бұрын
@@NitroCorrupted yes but if you really want to use youtube music, u need to get youtube premium. Else the app is really useless.
This video's production quality is right up there with more established channels. Great work.
@MBA-Maven
Ай бұрын
Glad you think so!
I switched to KZread music simply because I already subscribed to KZread premium. It’s just far more cost effective for so much more than just music :)
@dannyschwertner7785
Ай бұрын
I did the same because I pay for KZread premium. Do you find that KZread music doesn't stream as well? I hate when I'm on a run and YT music starts buffering. Never had that issue with Spotify. And yes, I keep yt music on audio only and run where there is plenty of cell service 🤷♂️
@snazzyapples4663
Ай бұрын
@@dannyschwertner7785 I never have streaming issues. But I do hate YT Music’s queue system. Anytime I start playing something and add a song to queue it adds it at the back of like 100 songs. There is no play next feature that I can find. That’s my one complaint with the app
@tohyongsheng3406
Ай бұрын
@@dannyschwertner7785it is possible to download the songs and acoid this issue
@Synical_22-qj4gl
28 күн бұрын
I always used YT music, becouse i dont want to pay for music, and spotify without premium is worse that trash. YT music is SOOOO much better without paying. Its only giving me a few adds, which im honestly fine with, but spotify? Oh yeah, i could make a whole list: 1. Adds (ok) 2. 5 skips per day (like wut??) 3. Shuffling isnt free (and i cant even skip a song more that 5 times???) 4. When you try to listen to an album or song by searching it, it instead gives you a completely random song (WHY THIS IS PROBABLY THE WORST ONE) 5. Probably something i forgot
@LucasSkyCarvalho
18 күн бұрын
I'm a long time Spotify user and I confess it was a good experience using YT Premium (no YT ads and YT Music). The Pro with YT Music is that you can find music that are not published on a Spotify, because someone's posted on KZread and you can listen just the audio of that video. The cons of YT Music for me it was hard to find podcasts to listen. And other cons is integration with other services, like Alexa, or even Android. I can use Spotify Music as my alarm clock.
This video is a good view from the financial side of things, however I would continue to use Spotify even if it became more expensive than the other streaming services. I personally find that the algorithm can’t be matched and is always pushing me to discover new music and genres. Not to mention neat features like being able to control music from one device with another device or having group sessions where multiple people can add songs to a queue from their own phones. I tried Apple Music and it just felt clunky outdated and only wanted to push the most popular artists onto me instead of really trying to know what kind of music I like.
@AtomicBoo
Ай бұрын
You like spotify's algorithm???? Before I switched to yt music (cant live without yt premium and music so its 2 for 1), I loathed spotify's algorithm, spotify was always recommending crap for me, also their not true random shuffle always playing the same 50 songs was infuriating too. Being able to play any yt video as a song is super nice too for a guy who listents to a lot of osts not available in apple or spotify.
@zeep3047
Ай бұрын
MY BROTHER IN CHRIST, YOU DESIGN THE ALGORITHM!
@thegreatershowaiter2522
Ай бұрын
@@AtomicBooSame here but instead of ost, im big on edm so a lot of livesets on youtube can be listened on youtube music. plus the youtube music algorithm knows me a little too well 👏
@alanortiz09
Ай бұрын
Im glad im not the only who loathes Spotify's algorithm!! @AtomicBoo
@Eaawesome59
Ай бұрын
@@AtomicBoo if you think the algorithm is bad it’s either because you don’t listen to enough music for it to really get going or you might not actually like expanding your music taste. KZread Music is a waste of time because anything that you can only find on KZread you can just make an MP3 file for free and then add it to local files to use on Spotify.
Spotify and Netflix should collaborate to create a bundle. To disrupt the marketplace.
@brianny-hj6ul
4 күн бұрын
Exactly
Spotify’s algorithm is untouchable
@dennisd9554
Ай бұрын
Don't necessarily agree. For some reason, Spotify seems to want to push some of my least favorite songs from my favorite artists on me. And then it seems to think that because I didn't skip them, I want to hear them over and over.
@spiyder
Ай бұрын
nope. had spotify for 3 months, and it still didn’t learn my music taste, it took apple music around 3 *days* to learn what i like.
@jarencascino7604
Ай бұрын
@@dennisd9554i agree with this. It will recommend a song and then think that because it recommended it to me, that I like that song and keep playing it. Pandora is the best imo
@MrYondaime705
Ай бұрын
This all depends on your music taste lol. Historically, Spotify is the the algo King. That could soon end
@frenchprint
Ай бұрын
@@dennisd9554 same. i've grown increasingly frustrated with their algorithm lately. if i happen to listen to a song more than once a particular day because i was enjoying it, they'll keep putting it in all my personalized playlists. then i get tired of it really quickly and it ruins it for me for a while.
I use YT music :)
@bradleymarr7311
15 күн бұрын
Red flag
@Brrrrr18
15 күн бұрын
same, it has the most music and if you have yt premium why would you pay for Spotify premium to
@akinji
13 күн бұрын
@@bradleymarr7311 Brain rot
@thefreakbinge
11 күн бұрын
@@bradleymarr7311 ?
@TechnoDS7
10 күн бұрын
@@Brrrrr18⬆️⬆️exaxtly!! 💯 More people need to realize this!
YT Music is the best. It has everything.
@Y-zf7tf
Ай бұрын
Spotify's music discovery algorithm is still superior tho.
@vibbs68s91
Ай бұрын
@@Y-zf7tfya but the shuffle problem with Spotify turned me off it completely
@slampog
Ай бұрын
@@Y-zf7tfI’d argue KZread Music has a far superior discovery algorithm. Spotify is good but nothing wow.
@ozark7834
Ай бұрын
@@Y-zf7tf As in they just keep putting the same set of songs over and over
@matvey2357
Ай бұрын
@@Y-zf7tf 3 years ago - maybe. But not today. Mixes of the day has the same stack of songs for YEARS. Maybe its better to find smth new in a fathomless world of songs? If I use "don't like the song" button Spotify gonna keep it in a ✨Mix of the Day✨ so this song gone be in a queue so u hear it again after some time. Very bad and its sad
Great video. The main thing separating Spotify from the others is branding. The other companies are better known for other things.
This is why people should use Spotify and pay more for it. Don’t let the big Bois kill the competition
I change from Apple Music to Tidal, for me tidal music discovery and new music suggestions are top notch. Quality is also very good too.
Thought I was looking a big channel until seeing you had a thousand subs. Keep the good work c:
@MBA-Maven
Ай бұрын
Thank you! Will get there one day.
Want a break from the ads?
@brent.
17 күн бұрын
Spotify isn’t meant to be used freely, you can’t blame if you didn’t pay
@ParasAryan
16 күн бұрын
atleast spotify provides free tier unlike its competitior.
I really enjoyed this video, it’s nice to get recommendations from smaller channels that have quality videos. Keep it up! I subscribed
Literally the only thing stopping me from leaving Spotify is their song recommendation, which has been very on point and had introduced me to some of my favorite artists. But if they're not releasing HiFi in another two months, I'm ditching it.
I’ve been with Apple Music since the beginning, but tried out Spotify when they had Joe Rogan exclusive and thought about moving over just to have it all in one app. But the more I used the podcast part it would forget where I left off in one and restart it and it did this on multiple occasions. I don’t use the apps to discover music other than “similar artist” suggestions so I’m fine with Apple Music and Apple had radio stations from other countries and I’ve searched Spotify and they don’t have that, so Apple wins on that front as well. Now with Rogan not being an exclusive, I’ve switched all my podcast to Apple podcast now and don’t really use Spotify for anything.
@mkw5398
7 күн бұрын
apple sheep, spotify and yt music are clearly superior, you just won't admit how sheepish you are
I use the free version of Spotify while i drive honestly i enjoy the ads as it reminds me of the radio days
This is a great video to show different economics principles.
Very informative and thank you so much. It's quite an effort to pull these many information and data. But another possibility to consider would be to increase the charges for the companies who are putting up Ads in-between the songs because of its high reach.
Great video, good luck with growing the channel
@MBA-Maven
Ай бұрын
Thanks, I appreciate it!
amazing video! thank you for breaking this business down.
@MBA-Maven
Ай бұрын
You are welcome! I'm glad you enjoyed the video.
Such and interesting and very detailed video, I’m subscribing 👍🏻
I didn't even notice that the video was done by a small channel, well done!!
The thing about option 3, that I feel like was a bit understated here, is the fact that spotify‘s dependency on other people‘s music makes the business unscalable. If they gain more costumers they will still have to pay the same percentage of royalties. Their overall profit margin wouldn‘t increase. Even if their original podcast aren‘t “as profitable as they had hoped“, original content is kind of the only way they could increase their income
@Deamon383
Ай бұрын
New users would all have to stream the exact same songs to make your comment true. If there is one new user that is mostly subscribed for podcasts they’re probably in the profit vs a Taylor swift diehard
@KaiayaRules
Ай бұрын
@@Deamon383 Yeah, but unless the podcast is a spotify exclusive/original you could still listen to it somewhere else. So really the only way for them to be profitable is by creating USPs which they don’t really have at the moment
@mkw5398
7 күн бұрын
@@KaiayaRulesthe hell are USPs, you can't just type that and not expand on it
@KaiayaRules
6 күн бұрын
@@mkw5398 Well, it's not an uncommon abbreviation. But sure, I can elaborate; my bad.😅❤ A USP is a unique selling point, sometimes also called a unique selling proposition. In essence, it's what makes your product or service stand out from its competition. The more saturated a market, the more important these become.
easily my favourite channel of this genre, glad i’ve been here to see you grow!
@MBA-Maven
Ай бұрын
Woah, I am so happy to hear that! Thank you so much for your support!
Incredible video! Finally another indie KZreadr, I'm a b1 in English and I understand everything!
Spotify is still popular
There are definite differences in the catalogs available for streaming as well as audio quality between the popular platforms. Do they all have access to the largest music distributors' libraries? They seem to, but definitely not all the mid to low level labels and artists make all of their music available on every platform. Calling the services identical is simply false. Even some large artists will have the odd EP or single not show up on one service. It seems like Amazon has the worst library overall.
@jarencascino7604
Ай бұрын
It is relatively homogeneous compared to other markets these days.
@raxcentalruthenta1456
Ай бұрын
Can't be worse than Tidal. I swear. Every week another song or two in my collection get greyed out and made unavailable.
KZread Music and Spotify are the only services that offer free streaming, but with ads, right? What would happen, if Spotify were no longer offering a free model?
@Kevynmorgan
14 сағат бұрын
They'll just go to KZread
@jayzn1931
2 сағат бұрын
@@Kevynmorgan You can’t even turn off your screen, right? Who would bear that for daily listening? I wouldn’t.
really cool video. But maybe try a smother change of the topics so it doesn't come as abruptly As to the topic itself. I think the change of the streaming service is not so easy as it got suggested. The only real possibility is paying a little fee to service that transfers it to another service as I believe that many many people do have a lot of songs.
Why on earth did anyone ever let three companies take over an entire industry? That’s ridiculous
@niveshproag3761
Ай бұрын
You're kidding right? Most industries in the world are like this 😂
@user-yh6dq2hl2t
Ай бұрын
Its not that they "let" it happen. Its competitive and they did what they had to do to get to the top
@ferrreira
Ай бұрын
The natural trend of capitalism is monopoly.
@jmanakajosh9354
11 күн бұрын
@@ferrreira It's not capitalism it's distribution. If youtube existed in 1940s during radio or 1990s during the birth of CDs it would've never happened.
@ferrreira
10 күн бұрын
@@jmanakajosh9354 But it didn't. And this applies not only to music services. ALL business types trend towards monopoly in capitalism.
I would still use spotify if it were to double its price. The value i get on it would still be amazing. Ive built up a library so big on spotify that i’d be devastated to lose it, i would actually start buying physical albums.
@Nhils
Ай бұрын
You can migrate it pretty easily actually! There are tools dedicated for that :) I was a paid spotify user from 2009 to 2022... ALL my music was on there... But I couldn't stand them funding alt right podcasts, so I left for a similar service and I've honestly been fine :)
@denvertitus235
Ай бұрын
Plus Spotify doesn’t truly have a library in the way that Apple Music does. I moved from Apple Music to Spotify and that’s one of the things I miss the most. The OS integration as well.
@J_Pizzle4shizzle
Ай бұрын
@@denvertitus235 i feel like spotify’s algorithm is really good at showing me new music that i would like. Many songs and artists i otherwise would not have found if looking for music on my own . I’ve had friends switch from Apple to Spotify and say the same. But theres pros and cons to each
@randomcow505
Ай бұрын
if you love your library so much, id HIGHLY recommend backing it up somehow, even if its just a huge bunch of screenshots
@J_Pizzle4shizzle
Ай бұрын
@@randomcow505 i thought about this. I’ll have to make a list. My library is close to 1500 songs. A lil bit
I use both I’ll just say the pros Spotify can be used remotely, we have a family business and I can control the music from anywhere. Spotify since it’s more popular among users, the playlist sharing is awesome! Apple Music’s sound quality is amazing! Apple Music’s sing along feature is amazing for karaoke! Apple Music has music videos too Apple Music can be used under one user, on several devices at the time (I have a family plan)
May this guy forever provide such amazing content
Opted KZread music over Spotify the best music service ever Audio quality is more better than Spotify
@19TheJohn93
15 күн бұрын
did I miss something? KZread has the worst audio compression out of all streaming services
KZread premium is THE ONE for me. I watch youtube a lot (entertainment, education etc.), so I'm saving tons of time I'd waste on ads. More to this, I get to use youtube music also. Amazing stuff.
True! I started using KZread music instead of Spotify because of its bigger playlist
i use yt music because i can remix/edit music and i can listen to it on the yt music app automatically in Spotify i have to upload them and i see people say the same phrase "put this on spotify please" when its already on youtube music
what about siriusxm?
This video is just wrong. Spotify has reported a profit the last three quarters, and they are probably going to report their first yearly profit for 2024. Given that they also raised prices by 10% in a number of markets, it is almost guaranteed that they will end the year with a profit. Also you forgot to mention something that is super relevant for Spotify, for most of the company’s live they have received tons of money injections from the 3 big music distributors, they basically own Spotify and would have kept injecting money as long as needed, for one simple reason, if you have control of the mean of distribution you are the one making the most profit, and Spotify is the biggest mean of distribution. Spotify has more users than all of the other music streaming services combined.
@imtiyazahmed3357
18 күн бұрын
You are wrong!
@diogodores1423
18 күн бұрын
@@imtiyazahmed3357 Sure, prove me that I’m wrong then. I can prove you that I am right.
Good video but you forgot about music sound quality across streaming services, which is an important factor to consider.
I think the other thing is that the competition doesn’t offer a free model. Then theres issues like how people feel that Spotify pays less to artists or the new T&C written up for audiobooks where they want to own all rights to books put on here. As for say them not bringing HiFi Lossless while many currently might not use it that could be a big feature to bring people to them. Personally I’ve been buying CDs which is why I used iTunes then Apple Music just works best with keeping all my music in one place. (I have Apple One) I think there’s certainly a change in society where a growing number of people are wanting to own physical again because they don’t like the price hikes and media especially older stuff being placed behind a paywall. I enjoyed your analysis though good video
Spotify is up 126% this year, they are by no means failing
@Charlie43348
Ай бұрын
Record revenue too. This same channel would've made a video on Uber a few years back, saying it's a broken business and will never be profitable. Lo and behold. Uber turns a profit of 1.43B. Who would've guessed a revolutionary business model and idea takes the approach to get as many customers as possible, as quickly as possible, operating on a loss, then rises prices and profits!! thats unheard of. lol.
@good-tn9sr
Ай бұрын
@@Charlie43348problem is Spotify has more powerful competition that can hold their prices indefinitely
Spotify has earned over 1 billion in profit this quarter. I've personally had a 100% stock gain after buying Spotify in 2022, benefitting from videos full of "conventional wisdom" like this one.
@hamzerpanzer
8 күн бұрын
What changed about their business model to cause such a huge flip?
@hamzerpanzer
8 күн бұрын
Nevermind I see that they finally made a profit, but it's definitely no where near a billion. I have no idea where you got that figure from, maybe you're getting it confused with revenue?
@wesleysanders8570
8 күн бұрын
@@hamzerpanzer q1 2024 gross profit - i've seen the broader playbook often over the last 20 years, with a big tech company seemingly "structurally unprofitable" but growing quickly. Later they're able to monetize properly and grow into their size by making relatively moderate tweaks.
My dad tried to start a music streaming company to break the current model and create a win-win for the customer and musician but it failed because he couldn't get enough big musicians and record labels to get on board (partly because his new model kinda defeats the purpose of the label companies, making them unnecessary and useless in his new business model)
Really good video btw thanks ❤
Spotify is dreadful for people that want to discover new music based on what they like. It's breadth of choice cannot compete with youtube that merely needed to adapt its algorithm to music only.
@tamepurse
Ай бұрын
I disagree , me personally i find that Spotify has been great with showing me new music. Way more so than Apple music
@NamTran-xc2ip
17 күн бұрын
@@tamepurseYup, AM is only good for lossless music.
Commenting for the algorithm. Great video!
@MBA-Maven
Ай бұрын
Thanks for the support, I highly appreciate it!
@Y-zf7tf
Ай бұрын
LPT: you can make multiple youtube channels, each curated for different things you are interested in. Like tech, video games, music (or even different genres of music), etc.
Do we know which category of users, premium or ad-based, generate more money for Spotify?
i am finding yt music and apple music’s UI/UX less encouraging to use after getting used to spotify for years. I really hope spotify can hang around as many days as possible 🙏
Been using Spotify since 2014, switched to Apple in 2021, never looked back since.
this was very interesting
Only reason I pay for Spotify is because of the multi device connectivity it offers, also I hate the YT music UI. And Apple Music just makes me feel more limited to the apple ecosystem which I’m not a big fan of (I use both android and ios)
Do you think you could make a more in depth video that compares Spotify, YTB music, Amazon music, etc. ? Because I honestly don't know which is better for me. Just an idea I have, would love to see it done by you! ❤
@4everTexas
13 күн бұрын
honestly this is really how it gose apple music: -sound quality -better user experience -and it easy to use with other apple products spotify: -ai is insane -bigger catalog -and its a more social platform youtube music: -it included with youtube premium.... amzon: -dont do it... trust i have usde all of these platforms except amzon. i am personally a apple music fan
merge with netflix
@BusterDarcy
Ай бұрын
Two sinking ships combined does not make for a seaworthy vessel
@axr973
Ай бұрын
Lol both will go Bankrupt by next year if that happens
@Y-zf7tf
Ай бұрын
@@BusterDarcy I'm not a netflix simp but netflix is actually thriving now. Emphasis on the NOW.
@BenjaminKeller
Ай бұрын
No! Repeat after me "Mergers are bad!" We don't need more big corporations like Amazon and Apple. We the oposite break them up into their parts so we can have competition again.
@logo417
Ай бұрын
More likely get bought by disney
Looks like Spotify is ripe for acquisition, it would certainly add value among bundled services companies such a Microsoft offer.
Fantastic analysis 👍
The only thing going for Spotify are the network effects with the biggest user base in music streaming.
If they're not making a profit, then how is that they still exist?
@danieljones3664
17 күн бұрын
Investors who hope to make a return on their investment when Spotify eventually becomes profitable. It’s actually quite common for tech companies to exist without making a profit.
@GlitchedEnt
17 күн бұрын
X is a prime example. Twitter was and still to my knowledge isn’t profitable.
@Mahlak_Mriuani_Anatman
16 күн бұрын
Learn Business my guy
@vesselinkrastev
16 күн бұрын
@@Mahlak_Mriuani_Anatman Not for me, thanks.
feels like bullshit tbh
@MBA-Maven
Ай бұрын
That is unfortunate to hear. Why did you not like the video?
@TheUnknownCatWarrior
Ай бұрын
Because it's wordy
@jakubkorona3557
Ай бұрын
@@TheUnknownCatWarrior imo this was a great video
@FoxToGo
Ай бұрын
i liked the video
@theinternetbutler
Ай бұрын
@@TheUnknownCatWarriorit's a video that contains information and does exactly what it's supposed to. feel like TikTok has removed your ability to concentrate on anything longer than 15 seconds that contains actual detailed information.
I love this video! Why does Spotify loses money? Because its expenses higher then income! Great, thanks :) It could be at least 3 times shorter if not describing obvious
When I like about Apple Music is that I can edit song properties on my computer and upload my own music and even combine them or add it to albums
You are so uneducated about this. You keep talking about how they all offer the same service but that’s far from accurate. KZread music has millions more songs than Spotify does. Spotify is missing so many it’s insane.
@jossshhhy
Ай бұрын
🤓
@SneakyCaleb
Ай бұрын
@@jossshhhy have fun listening to Taylor Swift and Drake forever lmao
@jossshhhy
Ай бұрын
@@SneakyCaleb ahh yes the only two main stream artists, of course I listen to them on repeat 24 hours a day. Have fun listening to no copyright sounds 🤡
I was a spotify user until I got hooked with yt, decided to switch to yt premium coz it includes yt music, this is a major win for me since I always use yt on my tablet also i can share my subscription with other family members
Great video. Keep up the good work 💯. I would like to see this channel touches million subscribers this year. Best of luck
0:03 dude got a nice taste of music playing 34+35 😂😂
Great video, you hit every nail right on the head. There is one correction though and that pertains to how you claim Spotify pays out. It's not a fixed amount per stream, it's more of a stream share per market. I'll break it down with simple numbers. If in one month, in the US market, Spotify collects $1 million from subscriptions + ads, 70% of that goes into their royalty pool. Out of all streams that are counted in that month from the US, if Drake accounted for 50% of all total streams in US, his right's holders would get 50% of that pool which would be $350,000. This means you can get the same amount of streams in back to back months but see a different pay out because of how much is in the pool. Keep in mind how I said per market, this means that streams in developing countries such as India are valued less as they have a lower subscription fee resulting in a smaller royalty pool. All this can basically be simplified to Spotify having a 70% tax on all revenue before they can do anything else with their money. Would have also been nice to include something about this (kzread.info/dash/bejne/qI6A1ZWvZNDLdM4.html) on why Spotify can't create their own label but this was a great vid!
Can you do a video about IT outsourcing and how this market changed since the 80s? Use Tata as example 😊. Thank you 🙏
Might just go back to buying CDs and downloading music....
The solution would be get more music record labels on the market. Make it more competitive and lower the prices that way.
Mate your content looks like KZreadrs with millions subs. Cheers for future. Brotha
Awesome video!!!!
I’ve tried everything, apple music, youtube music, prime music and i always come back to spotify
I’m using Spotify since 2016, so i can’t imagine switching to other app
Checked the subs after finishing the video. Surprised it's only 7k. You deserve much more. Insane production quality.
They recently required paying to view lyrics. I’m not doing anything to support them anymore 💀
Banger vid!!!
Good review for my AP Microeconomics exam next week😂
Awesome video
Just got an email from Spotify today saying my Premium Family is going up in price... £17.99 to £19.99. Great video btw!
@FastGuy1
Ай бұрын
They like to blame it on “inflation” 😂
@Con-Pin-
10 күн бұрын
Spotify is already stupidly expensive.. it is already the same cost as KZread premium, which includes both KZread music and no ads on any platform on YT, background play without third party stuff
KZread Music >>>> Its basically the same Audio Quality as Spotify with way bigger library, without songs getting removed every now and then. Apple Music is only better on Android, as Androids have LDAC and AptX support while iPhones have to be connected with wired headphones for hi-res audio. Also it suffers from same issue as Spotify (LIBRARY). Not to mention with KZread Music, you also get ad-free KZread Videos as well. Other than transfering the playlist, I do not see a reason why people still use Spotify. Like just shift to either Apple or KZread Music.
I’ve tried Spotify a couple times but always come back to Apple Music. I like shuffling all my songs from albums I save. I can’t seem to find a way to do that on Spotify.
The only way I see is if Microsoft buys Spotify, as they do not have territory in the music landscape, but could bundle it with their products
I like Spotify’s diverse feeling UI but I love Apple Music’s simplistic and intuitive user experience. I got an apple products so that’s legit the main reason but if didn’t, Spotify would legitimately be the way to go. (Forgot to mention the audio sounds a little better on Apple Music. Don’t know why but I guess better audio files? :p)
I think Spotify should focus more on user experience and find unconventional ways to engage the users. BTW good video, keep it up!
I had Spotify for a long time now after my KZread Music Subscription ended And I've been thinking if I should get Spotify premium and thinking about it twice, I'm not gonna get it, I've gotten too used to ads like a radio
As someone who used spotify (2years) / apple music (6months) and youtube music (8 months until now) Apple music is literally the worse music streaming i’ve ever used. Cant find many songs, no songs by individual creators. No community playlists Spotify is a great one. Everything is there. KZread is the best one so far, it got everything spotify offers plus you can listen to youtube videos or podcasts (not all podcasts are on spotify). It got all songs, even those uploaded 14 years ago with a weird name. 1- youtube music 2- spotify 3- apple music 😖