Spotify: What are you waiting for?

The Something Awful Forums > The Finer Arts > No Music Discussion > Spotify: What are you waiting for?

Klaus Kinski: Nov 26, 2007; Der Klaus

It's probably related to the US launch, yeah. And it's only 5�/� for unlimited which is basically what open is now, only without ads.

# ? Apr 18, 2011 13:25

Adbot: ADBOT LOVES YOU

# ? Apr 28, 2024 22:35

Kaiho: Dec 2, 2004

What I am confused about is how poo poo their metadata seems to be, considering they must get at least some of that info from labels.

# ? Apr 18, 2011 13:26

Det_no: Oct 24, 2003

Doesn't make sense to me, at all. I'd imagine the money they'll lose on quitters no longer listening to ads will not be recovered by people actually signing up for premium accounts (who have no ads either so there goes that) AND the five listens per song makes it nearly worthless for the free users and the artists. Not to mention that even if you DO pay they also remove songs here and there sometimes.

I think they are both trying to fool themselves when it comes to how many users this will affect and vastly overestimating the number of people that would sign up for the service.

# ? Apr 22, 2011 08:02

Competition: Apr 3, 2006; by Fistgrrl

Here's a blog post you'll find interesting...

quote:

Spotify, the latest revolution in online media. It�s fantastic - listen to any song you can think of, for free, any time. The software is a pleasure to use - it is blazingly fast, has super-neat features and delivers high quality streaming audio with no noticeable delays. So what�s the drawback? An audio advert is played every 20 minutes to offset the cost of your listening joys, that�s it. Oh, and in the UK you can only access 3 million tracks - a real shocker, right? So Spotify seems almost flawless - it has backing from the 4 major labels (which also hold ~30% stake in the company), it�s entirely legal and, most importantly, it�s free. But are they making a profit?

I�ve done a few sums, based on the current cost of advertising on the Spotify platform. After enquiring with their advertising department, I have learnt that the minimum cost of placing an advert on their system is �15 CPM (price per one thousand impressions). This is a LOT by any standard - in comparison, MuseLive.com currently earns of the order �0.10 CPM. Is this high CPM enough to yield a profit? My initial calculations say no.

I am assuming that an advertiser pays Spotify a set rate of �15 CPM for an audio advert. I am unclear as to what their rates are for traditional banner advertising, however I am lead to believe it is of the same order of magnitude. I will only be taking into account the profits earned due to �free� account holders, therefore the resultant value will be a minimum profit. I have not taken into account the exclusive contracts Spotify may hold with the individual record labels, and am therefore assuming that Spotify pay 1p for each on demand stream (this is an average price, split between the record label and the PRS). I have also noticed recently that two separate adverts are played every 20 minutes - one by Spotify and one by an external advertiser, bringing the total advertising time up to 1 minute, however keeping the same CPM (�15).

Using the above assumptions, let�s assume the average track length on Spotify is 4 minutes long. An advert is played to you once every 20 minutes. Spotify will earn �15 for every 1000 plays of that advert - so that�s 1000 (20-1) minutes of track playing, taking into account the 1 minute total advertising length. In this time you will have played approximately 4750 tracks, at a cost of �47.50 to Spotify. For every 4750 tracks played on Spotify (in the UK), they are theoretically making a LOSS of �32.50.

With an average of 10m tracks played daily, this equates to a daily loss of ~ �69,000. To recoup that much cash, they�d need just over 200,000 premium subscribers, not taking into account the loss of advertising from these customers (Spotify Premium is an ad-free service).

Bear in mind that this is a worst case scenario (using minimum CPM values, taking non exclusive on-demand streaming royalty values and ignoring standard banner advertising). Spotify have a significant number of premium subscribers which will give a healthy boost to their profits, hopefully pushing this figure into the black. It is worth noting, though, that this figure is sufficient enough to assume that free Spotify account holders ARE making a loss for the company. These accounts are obviously brilliant marketing tools, but it makes you wonder how long they can keep this up for.

Good luck, Spotify!

http://www.trilson.co.uk/?tag=spotify

If he's right (and I have no reason to believe he isn't) Spotify are actively losing money on the free users, they're essentially giving away too much for too little return.

Another huge issue is that artists and labels are making gently caress all money from Spotify, (Spotify paid out �45 million last year even though they have 3 and a half billion plays) it's becoming more and more obvious that Spotify has been used as an experiment by the labels/artists, it has to start making them some real money or they will shut it down and we won't see a service this favourable towards the user ever again. wouldn't be surprised if this change in pricing was specifically to respond to new demands by the industry. Look what I found...

http://www.informationisbeautiful.net/2010/how-much-do-music-artists-earn-online/

Spotify has 7 million users of which only 1 million are paying (who're basically subsidising the service), they simply need to cut down on the free users and increase the paying users, especially if they wish to continue their current deal with the artists/labels and if they want to expand into America.

# ? Apr 22, 2011 20:32

Cerv: Sep 14, 2004; This is a silly post with little news value.

Competition posted:

Here's a blog post you'll find interesting...

Thanks, that was interesting.

I think it's strange that the radio stations can get enough from advertising to cover their royalty fees, but Spotify can't. When in theory the targeted ads should be much more valuable to the advertiser than the broadcast ones.

Sadly I don't think Spotify will be able to grow large enough to start dictating to the record labels a la iTunes because of the significant label part ownership that gives them a measure of control.

# ? Apr 22, 2011 20:54

9-Volt Assault: Jan 27, 2007; Beter twee tetten in de hand dan tien op de vlucht.

Det_no posted:

Doesn't make sense to me, at all. I'd imagine the money they'll lose on quitters no longer listening to ads will not be recovered by people actually signing up for premium accounts (who have no ads either so there goes that) AND the five listens per song makes it nearly worthless for the free users and the artists. Not to mention that even if you DO pay they also remove songs here and there sometimes.

I think they are both trying to fool themselves when it comes to how many users this will affect and vastly overestimating the number of people that would sign up for the service.

I wouldnt be surprised if they actually lose money on the free users. The whole idea of free is going to turn into a taste of what you can get, not something to use indefinitely. Cant say i blame them, as people should stop being such cheapasses and just pay the few pounds/euros/dollars it costs a month.

# ? Apr 23, 2011 11:42

ZoDiAC_: Jun 23, 2003

A few guys I know who aren't interested in the label or musician end of it have just switched to Grooveshark. Most users I expect just want to find the songs they want. Spotify losing customers will be down to the shrinking catalogue mroe than anything else.

# ? Apr 23, 2011 13:24

slowdave: Jun 18, 2008

But Grooveshark is terrible...?

# ? Apr 23, 2011 13:35

Kaiho: Dec 2, 2004

slowdave posted:

But Grooveshark is terrible...?

As is Deezer. Jesus, what a lovely system.

# ? Apr 23, 2011 13:53

9-Volt Assault: Jan 27, 2007; Beter twee tetten in de hand dan tien op de vlucht.

One thing i really do not like about spotify is how a lot of songs which are longer than 10 minutes are blocked by the label/artist. Wanted to listen to some Explosions in the Sky and 3 out of 5 albums miss one song because of its length. :argh:

# ? Apr 25, 2011 10:17

Frindevil: Jul 4, 2006; Haggis Keeper

I wanted to point out that they have a sign up page for invites for the US now:

http://www.spotify.com/int/coming-to-the-us/

# ? Jul 6, 2011 19:30

Cheese Bridge Area: Jan 27, 2008

The 10hr per month limit has made spotify useless to me. I've switched over to http://www.we7.com/#/ for my legal music streaming needs.

# ? Jul 6, 2011 23:47

Another Person: Oct 21, 2010

Am I the only one still using Spotify now then? I am on the Unlimited deal for the time being because I am lazy.

# ? Jul 7, 2011 01:25

slowdave: Jun 18, 2008

Another Person posted:

Am I the only one still using Spotify now then? I am on the Unlimited deal for the time being because I am lazy.

What? No, I don't think its popularity has dwindled much, even with the changes they did. I think 10 hours a month is enough for most casual listeners. Besides that, it's a decent audio player for your own files, too, and they don't count towards the limit.

# ? Jul 7, 2011 19:15

Konec Hry: Jul 13, 2005; too much love will kill you; Grimey Drawer

Another Person posted:

Am I the only one still using Spotify now then? I am on the Unlimited deal for the time being because I am lazy.

No.
I have used Premium for 1 year+ and I couldn't be happier. 99 sek per month is absurdly low considering how much I use Spotify.

# ? Jul 7, 2011 19:35

9-Volt Assault: Jan 27, 2007; Beter twee tetten in de hand dan tien op de vlucht.

Another Person posted:

Am I the only one still using Spotify now then? I am on the Unlimited deal for the time being because I am lazy.

No, have had unlimited for months now. It owns, especially when used mobile. I dont get why people object so much against paying 5 dollar/euro/mooncurrency for it. I had a lunch today that was more expensive than that and way less enjoyable.

# ? Jul 7, 2011 21:02

Another Person: Oct 21, 2010

Good to know I am not the only one then, my friends/family all look at me like I just took a dump on their carpet when I tell them I still use it and am paying for it. The convenience and enjoyment I get out of it way offsets the five pounds I put aside for it.

# ? Jul 7, 2011 22:49

Superanos: Nov 13, 2009

slowdave posted:

I think 10 hours a month is enough for most casual listeners.

But 5 plays per track makes the free service totally useless. It's not time limited, you can play a track five times and then it's off limits forever. Spotify is practically a pay service now.

I guess all their ad revenue is gone now because nobody gets ads.

# ? Jul 8, 2011 15:56

Klaus Kinski: Nov 26, 2007; Der Klaus

Charlie Mopps posted:

No, have had unlimited for months now. It owns, especially when used mobile. I dont get why people object so much against paying 5 dollar/euro/mooncurrency for it. I had a lunch today that was more expensive than that and way less enjoyable.

Even If I owned physical copies of the albums, I'd still pay for how easy it is to sync poo poo to your phone. I just wished it was less of a scrollfest when you have a ton of playlists.

# ? Jul 8, 2011 16:21

Konec Hry: Jul 13, 2005; too much love will kill you; Grimey Drawer

Hi, America.

http://www.spotify.com/us/hello-america/

# ? Jul 14, 2011 13:12

Disappointing Pie: Feb 7, 2006; Words cannot describe what a disaster the pie was.

Do any goons have invites available?

I'm probably going to buy this but I want to see what the hypes all about first!

Edit: Wow that was super fast thank you!

Disappointing Pie fucked around with this message at 14:23 on Jul 14, 2011

# ? Jul 14, 2011 14:21

ionn: Jan 23, 2004; Din morsa.; Grimey Drawer

Disappointing Pie posted:

Do any goons have invites available?

hal.basic@gmail.com

I'm probably going to buy this but I want to see what the hypes all about first!

You got it!

Here are a bunch of invites. Just pick one at random and hope you're first to it. I'll try to keep things refilled (and remove used ones). 28 goon accounts created so far!

aeJwDXbmfzFm9ABq
fpuxtxb4GbFhGUyN
ehdctmcS9xYUr2Bh
aAdEVKJn4LRPBVJ6
ctMe6qErJucgAafk
cWMr2XbHSyUNDRat
fxRdrALFtensqKKH
fARfT95nyD2eWeyS
dsVn94Jqp6U8JFND
ceaAB68fE4a6F6C2
fCR4HAKYXXZkDEV6
dKLJ9UTpdGhmALKb
cVskXBBwwpLEWJZw
a28rfAwx4W8BXddk
bNWD8L3fsV3XfGY2
bpMdgKkbVrn8cGFy
esgr6ruptJesV4XA
cchRUsW64CaCH43Z
cMwuMJAgcCA9asNW
b5Lmur8T8XfPEpaE
c55wUd4Vqwkx8e9Y
cSkHwrBEN8aZPAgp
eKJYL7uPTBHLbr47
cXJwPVtWmU6H6FZ6
b8L7mB2zCVyMJuUe
eat8bY4uKRN3XPfg
fr2ATwKcafnSxZdc
eeGmeZzbmHVNbJhB
agYRKh94ArULBZSW
aLagrWnSZAWYu8Ud
cXnEKAmVppKuWS3B
cTH89tfacGA5TwaD

ionn fucked around with this message at 17:00 on Jul 14, 2011

# ? Jul 14, 2011 14:23

The Human Cow: May 24, 2004; hurry up

ionn posted:

You got it!

Here's a few more, shout out if you use them. I'll post more if there's interest.

dJebtyNVEnDgbtk6

Took this one! Thanks!

# ? Jul 14, 2011 14:28

mynnna: Jan 10, 2004

As a general note, while it claims to be on a limited basis right now, I signed right up and am in, so the "limited basis" may be overstated.

# ? Jul 14, 2011 14:34

Konec Hry: Jul 13, 2005; too much love will kill you; Grimey Drawer

Din morsa �r som en Spotifyinvite - vill du ocks� ha s� fr�ga mig

ckCY2U8GYzdfGgbF
dVCHhcwMcTcpX5xS
anmbC4M4dVkKzC3T
dr8WzusdYZPdT7gn
d7PDaCsU57AVzqty
cFGLzWWnUsaaNxhB
aRcVBHrS3BYxSn3W
fyDeB33TVMyeR2W7
bYF4DMTdnxsW6CHz
bnHkpyLDeXXsWfPU
aSG9cHLJYu7ACAgE
cXeM8c7sGuApuKnu
fqyn2L5xYAfgqayc

# ? Jul 14, 2011 14:35

ionn: Jan 23, 2004; Din morsa.; Grimey Drawer

Torael_7 posted:

As a general note, while it claims to be on a limited basis right now, I signed right up and am in, so the "limited basis" may be overstated.

Invites are needed for free accounts only. Everyone who pays is welcome right in.

# ? Jul 14, 2011 14:36

LoveTheWeeez: Mar 25, 2004; I accidentally ran over it. It is a Christmas miracle.

ionn posted:

fMdu6rW7X3AYAryk

Used this one! Thanks

# ? Jul 14, 2011 14:44

KidDynamite: Feb 11, 2005

I just signed up in the US. Anyone care to post some dope playlists?

# ? Jul 14, 2011 14:47

9-Volt Assault: Jan 27, 2007; Beter twee tetten in de hand dan tien op de vlucht.

KidDynamite posted:

I just signed up in the US. Anyone care to post some dope playlists?

http://sharemyplaylists.com/ for loads of playlists

http://www.bbcify.co.uk/ - playlists based on what the different BBC radio shows play

http://www.bbcify.co.uk/lastify/ - playlist based on your last.fm recommendations

http://spotibot.com/playlist/ - give it an artist and it makes a playlist based on it's related artists on last.fm

http://www.biblify.com/ - "biblify searches the web every night for the latest album reviews from the greatest sites (including The Guardian, NME, Pitchfork, Uncut, Drowned In Sound, The Fly and the BBC), works out the average score and provides links to the album on Spotify."

http://www.spotifyclassical.com/ - classical music on spotify

and two applications:

http://cheese.freshmeat.se/index.php - fills a playlist automatically with songs which are alike to the ones you listen. Requires to either have the website up or use a small desktop application.

http://www.equalify.me/ - an equalizer (still in beta).

9-Volt Assault fucked around with this message at 15:09 on Jul 14, 2011

# ? Jul 14, 2011 15:02

bomboloni: Mar 31, 2011

ionn posted:

Here's a few more, shout out if you use them. I'll refill if there's interest.
amMAbgACyX8kAfd4

I used this one, thank you very much

# ? Jul 14, 2011 15:04

trigger9631: Nov 18, 2004; I love my ducks.

I used e5JMpD3JDfLA4z72. Thanks!!

# ? Jul 14, 2011 15:08

KidDynamite: Feb 11, 2005

Charlie Mopps posted:

http://sharemyplaylists.com/ for loads of playlists

http://www.bbcify.co.uk/ - playlists based on what the different BBC radio shows play

http://www.bbcify.co.uk/lastify/ - playlist based on your last.fm recommendations

http://spotibot.com/playlist/ - give it an artist and it makes a playlist based on it's related artists on last.fm

http://www.biblify.com/ - "biblify searches the web every night for the latest album reviews from the greatest sites (including The Guardian, NME, Pitchfork, Uncut, Drowned In Sound, The Fly and the BBC), works out the average score and provides links to the album on Spotify."

http://www.spotifyclassical.com/ - classical music on spotify

and two applications:

http://cheese.freshmeat.se/index.php - fills a playlist automatically with songs which are alike to the ones you listen. Requires to either have the website up or use a small desktop application.

http://www.equalify.me/ - an equalizer (still in beta).

Very cool! Thanks man.

# ? Jul 14, 2011 15:12

Kaboobi: Jan 5, 2005; SHAKE IT BABY!
SALT THAT LADY!

ionn posted:

You got it!

Here's a few more, shout out if you use them. I'll refill if there's interest.

Used cJYyWwr4XtkWacnZ, thanks!

# ? Jul 14, 2011 15:16

trash person: Apr 5, 2006; Baby Executive is pleased with your performance!

How do I use one of those invite codes.

I seem to be dumb.

e: Nevermind, found it.

Used this code: erfnZsKtZWVeV2hk

Thanks!

trash person fucked around with this message at 15:22 on Jul 14, 2011

# ? Jul 14, 2011 15:18

ionn: Jan 23, 2004; Din morsa.; Grimey Drawer

Crow_Robot posted:

How do I use one of those invite codes.

I seem to be dumb.

http://www.spotify.com/us/get-spotify/overview/

That's in the US, but it should send you to the right signup thingy for your country.

ionn fucked around with this message at 15:23 on Jul 14, 2011

# ? Jul 14, 2011 15:21

gariig: Dec 31, 2004; Beaten into submission by my fiance; Pillbug

Konec Hry posted:

d7PDaCsU57AVzqty

Used and thank you

# ? Jul 14, 2011 15:24

Dressed For Chess: May 6, 2007; Fun Shoe

ionn posted:

You got it!

Here's a few, shout out if you use them. I'll try to keep things refilled (and remove used ones).

bYTcW9rZ7pXxb6w9
cgpSkDKC3ZacnBTw
aeJwDXbmfzFm9ABq
fBTBYFBdTNGHGXLE
aNmuzUfmexxYuG6D
c4uyBVJ7ye68RcRx
efHKMeRC5q2D7ymL
fpuxtxb4GbFhGUyN
cDybhaWPUzH45HH7
ehdctmcS9xYUr2Bh
eLh8btPPT7A6ugmx
eEeXb5q6DZFNa7T3
ax53Rc6pR3rdfPhC
egAqPDRSxhNFkF4L
bN8KHCnkBxuUg7AX
aAdEVKJn4LRPBVJ6
cqSMrF557ezb42N7
ctMe6qErJucgAafk
cMW8p4TtWrpapL8h
exKn6KqdTNhCqb7y
amY6D32rTCT3WppR

Used this one. Thanks!
bYTcW9rZ7pXxb6w9

# ? Jul 14, 2011 15:24

VImpaler24: Jun 8, 2004; This crazy tomato is rapin' me.

Konec Hry posted:

Din morsa �r som en Spotifyinvite - vill du ocks� ha s� fr�ga mig
aSG9cHLJYu7ACAgE

Used this one. Thanks!

# ? Jul 14, 2011 15:24

EasyEW: Mar 8, 2006; I've got my father's great big six-shooter with me 'n' if anybody in this woods wants to start somethin' just let 'em--but they DASSN'T.

Used this one. Thanks ionn!
aNmuzUfmexxYuG6D

# ? Jul 14, 2011 15:38

Adbot: ADBOT LOVES YOU

# ? Apr 28, 2024 22:35

Dr. Glasscock: Apr 15, 2004; HOO-DAH!!! Fatal Wiimote blow to the face, 20 points!

Used bnHkpyLDeXXsWfPU. Thanks dude! Looking forward to trying this.

# ? Jul 14, 2011 15:38

The Something Awful Forums > The Finer Arts > No Music Discussion > Spotify: What are you waiting for?

«‹›75 »