I'm liking the chart but don't know enough about how they make money. Can they replicate the netflix model?
I'm no expert in this area, but $SPOT makes money from subscription fees and ads. They pay substantial licensing fees. One way NFLX is reducing those fees is by developing their own original content that people actually want to watch. This both brings subscribers, but also reduces costs to service those existing subscribers who watch their content. I don't think this translates as well to music. If SPOT or AAPL decided to create their own bands, I just don't that would go over as well as TV shows and movies. Creating original music is different from exclusive licensing of a well established band. NFLX is about $10/mo. People are used to paying $100+/mo for tv/movie service, so from a comparative point of view, NFLX is easy to justify. SPOT is $10/mo, but a lot of people just listen to stuff on youtube or other services. I think it's not as easy to justify subscribing from that perspective. I don't know that if the ads make up for the licensing fees of free users. I run spotify damn near the whole day I'm working provided I'm not in a meeting. From a user's point of view, I'm an avid user of $SPOT, but I hate their latest mobile app update (playlist management is worse than previous version). They've completely dropped the ball on the UX of the discovery weekly playlist. I hate that I can't block certain categories of ads and the ads popping up on the desktop software when I'm trying to change a song is pretty annoying. Audio quality isn't great. Sure I could fix the ads problem by subscribing (I used to subscribe mainly for the supposed audio quality improvements), but well I'm no longer a subscriber and I won't be subscribing again until they offer lossless audio. I'll probably switch back to $AMZN music or even $P before that happens.
Can someone explain this price action, its insanity? earnings loss 400 mil a quarter and it went down 5% and then up 15% Til 9.45 ?