More > Music, Movies, Politics, and Other Cheap Thrills
The Music Business
stewart_pk:
--- Quote from: JimH on October 04, 2017, 07:02:38 am ---Why would you buy a money losing business when you can just "rent" it?
--- End quote ---
Because it will make money in the future.
JimH:
--- Quote from: stewart_pk on October 04, 2017, 07:21:49 pm ---Because it will make money in the future.
--- End quote ---
None of the music services have ever been profitable for long. Pandora put together a couple of profitable quarters before going public, then went back to losing money.
https://finance.google.com/finance?q=NYSE%3AP&fstype=ii&ei=D4PVWYi4JIGHjAGDz66AAw
They've lost $275,000,000 in the last quarter, on $375,000,000 in sales.
That's like growing a business by selling $100 bills for $25.
Hendrik:
--- Quote from: stewart_pk on October 03, 2017, 09:15:43 pm ---If a huge company like Google aquires Spotify it could hardly be called a "struggling" company, they would have to see potential value in it.
--- End quote ---
You don't purchase a company like that for its "value", especially if you already have a competing service of your own (like Google has, even two, technically) - you purchase it to inherit their users and exclusive music deals, and get more users and more music onto one platform, saving costs.
stewart_pk:
--- Quote from: Hendrik on October 05, 2017, 01:57:52 am ---You don't purchase a company like that for its "value", especially if you already have a competing service of your own (like Google has, even two, technically) - you purchase it to inherit their users and exclusive music deals, and get more users and more music onto one platform, saving costs.
--- End quote ---
Thank you for understanding there can be more value of an asset to a particular buyer than just it's raw value on paper.
stewart_pk:
--- Quote from: JimH on October 04, 2017, 07:55:28 pm ---None of the music services have ever been profitable for long. Pandora put together a couple of profitable quarters before going public, then went back to losing money.
https://finance.google.com/finance?q=NYSE%3AP&fstype=ii&ei=D4PVWYi4JIGHjAGDz66AAw
They've lost $275,000,000 in the last quarter, on $375,000,000 in sales.
That's like growing a business by selling $100 bills for $25.
--- End quote ---
Thanks for the economy lesson.
Isn't this all just a moot point anyway? Because you've already said Apple won't be interested and Spotify has licensing issues even if they were.
I'd really like to see Spotify integration in JRiver. But if it's never going to happen then maybe we should save time and stop discussing it.
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