October152009
"I love Spotify as much as the next music fan, but its struggle to extract value is in danger of becoming a spectacle. To consumers it’s a miracle, to the industry it’s a problem to be solved. The strategy looks right – drive a developing ad-products business as much as possible, while trying to upscale users to a pay model for a better experience. It has to be the test case and I would strongly argue, deserves all the help it can get from its music partners. We need to begin to realise though, Spotify’s potential. It has the potential to generate revenues equivalent to a large niche, while at the same time eating further into CD revenues. This is the future music market – fragmentation into a number of niches."
— Will the music industry ever extract real value from digital? (via gcn)
Reblogged from Serve Well and Be Well Served.
