The Intrinsic Value Podcast - The Investor’s Podcast Network
MI362: The Story Of Spotify And Valuation w/ Shawn O'Malley
Jul 29, 2024
Shawn O'Malley, an expert in music economics, unpacks the fascinating evolution of Spotify and its crucial role in the music industry. He explains how streaming transformed piracy's grip on music consumption. Discover why Spotify's model keeps users engaged and how they maintain a competitive edge. O'Malley also reveals Spotify's plans for profitability, challenges in royalty distribution with music labels, and the potential growth within podcasts and audiobooks. His insights into financial models will inspire aspiring investors.
56:16
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Quick takeaways
- Spotify revolutionized the music industry by shifting from music ownership to a subscription-based streaming model, significantly reducing music piracy.
- The platform's algorithm-driven features enhance user engagement and discovery, making music more accessible and affordable for consumers worldwide.
Deep dives
Transforming the Music Industry
Spotify played a pivotal role in the transformation of the declining music industry, reinventing the way consumers access music. Before its inception, music piracy ran rampant, leading to a significant decline in recorded music revenue. In contrast to platforms like iTunes that focused on music ownership, Spotify's model revolved around streaming, allowing users to access a vast catalog for a subscription fee. This shift not only curtailed piracy but also encouraged music fans to pay for content, revitalizing the music industry after years of decline.
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