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Why Streaming Struggles
JimH:
"Tidal, a subscription-based music and video streaming service owned by rapper Jay-Z, is being investigated in Norway over allegations of falsely inflating listening numbers."
http://fortune.com/2019/01/14/tidal-streaming-fraud/
JimH:
I ran across this 1999 article on the public offerings of Liquid Audio and Musicmaker.
https://money.cnn.com/1999/07/09/technology/liquid/
mp3.com raised $370 million in 1999, and blew it all. Vivendi acquired the company in 2001 for 20% of their IPO value, then dismantled it in 2003, selling the carcass to CNET.
Heady days!
tij:
Just curious ... why this works for video (like Netflix) and doesn’t for music?
Hendrik:
Netflix is also quite in debt, and it'll get worse for them as more and more streaming services jump onto their own platforms like Disney.
The video streaming industry is currently killing itself by splintering into a multitude of services. People are not going to be happy to pay 5 streaming platforms instead of one or two which they had in the past.
Disney will of course also lose a lot of money on their Streaming Service, but they are a huge company and will just funnel the money from their other income.
JimH:
Netflix is OK.
March 19 quarter profit was $344 miillion.
Cash on hand was $3.35 billion.
The services that I'm tracking here just don't turn a profit. That, as a business plan, has a limited life.
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