Lessons from Spotify – Stratechery by Ben Thompson


52 bookmarks. First posted by joeybaker march 2018.


The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones.
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march 2018 by marshallk
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
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march 2018 by wenxin
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. via Pocket
IFTTT  Pocket  saas  spotify  ToReadWithPocket 
march 2018 by aksie
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
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march 2018 by tonyandrewmeyer
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. via Pocket
Pocket 
march 2018 by driptray
"Lessons from Spotify"
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march 2018 by peterjblack
Lessons from Spotify “Spotify is an impressive. Being a true aggregator, though, means gai…
from twitter
march 2018 by Gleonhard
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. via Pocket
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march 2018 by archizoo
Silicon Valley is, unsurprisingly given the name, built on silicon-based computer chips, and that goes for Silicon Valley venture capital, as well. Silicon-based chips have minimal marginal costs — sand is cheap! — but massive fixed costs: R&D on one hand, and the equipment to actually make the chips on the other. And while those two costs live on different parts of the income statement — the latter is a cost of revenue that impacts gross margins, while the former is “under the line” and an operational cost that only impacts overall profitability — the fundamental economic rationale for taking on venture capital is the same: spend a lot of money up-front to develop and build a product, and take advantage of minimal marginal costs to make it up in volume. You can see how this model translated perfectly to software: marginal costs were even lower, and an even greater percentage of costs were R&D. Companies needed lots of money to get started, but those that succeeded could generate returns that vastly exceeded the amount of investment. This is certainly the case for today’s business models.

Over the last few years there has been a third model of startup that has emerged: the so-called sharing economy, or Assets-as-a-Service (AaaS). When you spend $10 on an Uber or Lyft ride, around $7 goes to the driver; when you spend $100 on an Airbnb, $85 goes to the host, and so on and so forth.
software  best-of-2018  innovation-mapping  stratechery 
march 2018 by elrob
Spotify is an impressive product and company, and CEO Daniel Ek and team deserve credit for reaching this point. Being a true aggregator, though, means gaining power over supply; Spotify doesn’t have that — the company doesn’t even have control over its marginal costs — and it’s hard to see where the profits come from.
spotify  economics 
march 2018 by dancall
Lessons from Spotify, about Spotify’s hope on an enormous streaming market
from twitter
march 2018 by davedriesmans
RT : The bear case on Spotify is hard to argue with. Typically brilliant
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march 2018 by mathewi
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. On one level, these business models are quite different: the former gives away software for free with the hope of convincing a third party to pay for access to users; the latter charges some portion of users directly. The underlying economics of both, though, are more similar than you might think — indeed, both are very much in line with venture-backed startups of the past.
startups  economics  business  blog 
march 2018 by lneilson
Ben has some of the best writing on tech economics out there. This is a particularly well-done article because it breaks down a phenomenon that a lot of people are already familiar with-- Spotify's high variable cost-- with great writing.
technology  interesting  -weekend-read  economics  entrepreneurship 
march 2018 by bw
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
from instapaper
march 2018 by adrianhon
The bear case on Spotify is hard to argue with. Typically brilliant
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march 2018 by bojo
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
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march 2018 by jamies
"That, though, is precisely the problem: Spotify’s margins are completely at the mercy of the record labels, and even after the rate change, the company is not just unprofitable, its losses are growing, at least in absolute euro terms"
articles 
march 2018 by jonerp
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. via Pocket
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march 2018 by schmitz
via Starred items from BazQux Reader http://ift.tt/1cAKc9M and IFTTT
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march 2018 by stinkingpig
Lessons from Spotify
from twitter
march 2018 by trieloff
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for business-focused ones. via Pocket
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march 2018 by keithprime
via Stratechery by Ben Thompson Member Feed https://stratechery.com
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march 2018 by sbmandal
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
from instapaper
march 2018 by Shurs
Lessons from Spotify

Spotify has a marginal cost problem, but while the cause is unique t…
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march 2018 by girma
The two dominant business models for venture-backed startups are advertising for consumer-focused companies, and Software-as-a-Service (SaaS) for…
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march 2018 by joeybaker