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Music Think Tank Open

Anybody (no really anybody) can contribute anything relevant to this page…All mp3s should be posted on the MTT radio page. If you cannot find your post here, your article may have been moved to the MTT homepage.

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Entries in business model (2)

Tuesday
Mar172015

Spotify's Rotten Business Model: The "Unlimited Everything" Subscription is a Loser - Now Let's Move Forward.

Everyone is asking “How do we make Spotify work?” The answer is that you don’t, because it just can’t - assuming your goal is to maximize the total revenue earned by the music industry. That’s certainly our goal. Here’s an intro into why Spotify’s business model should be dumped, and the revenue-maximizing model we should pursue moving forward.

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Wednesday
Feb022011

Why Don't They See It?

I think we are all tired of hearing about how the music industry is a terrible business.

I get several email newsletters every day chronicling the steady, downward spiral of the major labels. These emails also report about infringers, pirates and the fact that you need more zeros than most simple calculators can handle to find your percentage royalty share from the much loved and hyped Spotify. Doesn’t anyone in the music business talk to people who have been through gut-wrenching changes before in related (or perhaps not related) businesses?

So what are the problems? Buying and consumption patterns of the customers have changed, the labels have lost control of pricing, and barriers to entry across the spectrum have evaporated (to name a few). When I see these problems which seem completely insurmountable, I think of two companies who have lived through this firestorm, and as of today, are thriving, globally dominant operations. The first is IBM and the second is Getty Images.

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