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Why are record companies dumping their Spotify stock? • Office of Copyright
Stephen Carlisle:
<p>if you hold shares in a company that is running a deficit of over €2bn, with annual losses approaching €400m, you might come to the conclusion that Spotify is not going to make any real profits for quite some time, and thus no dividend to you, the shareholder. It might also point towards the conclusion that Spotify’s continuing losses will not have an upward effect on the stock price, making it more prudent to sell now.

Could Spotify turn a profit by reducing its costs? Of course, and Spotify is always ready to point the finger at greedy copyright owners.

“We have incurred significant costs to license content and continue to pay royalties to music labels, publishers, and other copyright owners for such content. If we cannot successfully earn revenue at a rate that exceeds the operational costs, including royalty expenses, associated with our Service, we will not be able to achieve or sustain profitability.”

Boo! Hiss! Greedy copyright owners!

Except there’s this. In February of 2017, despite losing truckloads of money for years, Spotify found it necessary to open offices in New York City. And not just in any old office building. It rented space in the newly rebuilt World Trade Center. 13 According to Digital Music News, this is 478,000 square feet of office space spread over a total of 14 floors. This was not enough. Spotify later signed an option to take on 100,000 more square feet. 14 I suggest that you click on the link provided in the endnote and take a look at the pictures.

Nice pool table, guys.

The cost of this? Again according to Digital Music News:

$2.77m a month, or $33.29m a year. Over the 17 years lease, more than $566m in rent; $31m in upfront payments. To this we can add the fact that:

In 2015, executive and board member pay was $16.9m, an increase of 300% over the previous year. In 2015, the average Spotify employee made $150,000. During 2015, Spotify lost $253.8m.

It does not seem from these numbers that Spotify is interested in reducing its costs, if it has to come by way of reducing their prestigious digs and creature comforts. If you are a record company, and you know this from close up observation, it might make sense to sell your shares.</p>
spotify  music  shares 
8 minutes ago by charlesarthur
Beastie Boys, Select
Curious, they haven't posted on their blog in six years... Until this week. Hope this means something. (Edit: Looks like they have a book coming out Oct 30)
music 
4 hours ago by glass

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