GMC:er Posts: 25.297
Joined: 23-December 09
From: Atlanta, Georgia, USA
QUESTION: IS YOUR CHANNEL OR PODCAST READY TO BE BOUGHT BY SPOTIFY?
Recently it was announced that JOE ROGAN signed a $100 Million Dollar Deal with Spotify. Why does this matter? In short, it revamps the entire streaming universe. Spotify has spent three quarters of a BILLION dollars to ramp up their podcasts. As it stands, podcasts are about one quarter of all streams on spotify. Why Joe Rogan? Joe has about 3 Billion Views on Youtube. Spotify saw the traffic that Joe was generating and they wanted to be the owners of this content. Joe will be the top streaming talent on Spotify. Ahead of Drake, ahead of everyone. What’s more, Joe’s podcast is being TAKEN AWAY From youtube. It will be on Spotify only. Making it a Spotify “Exclusive” which will drive people to join spotify just to listen to Joe.
What’s more Spotify is now going to add VIDEO! Yes VIDEO ON SPOTIFY, just to provide video for Joe’s podcast. This is a major shift. Before now, spotify didn’t do video at all. Now, with one new bit of talent, they are going to add video to their platform. With video on spotify, it blurs the line between youtube and spotify. The more video that gets added to spotify, the more it will cannibalise the youtube audience. Of course, youtube has a pay to play option, but it’s not been adopted very widely since people are used to getting their youtube for free. Getting them to switch to a pay model has not been a huge hit with fans. There is a free version of spotify but it’s limited and is add supported. Many folks just pay the money to get rid of the adds and have full control over there playlists. It’s spotify that effectively killed the MP3 market by providing every song one can think of and letting you download them as well, without any adverts.
Now, Spotify is moving in to video based content like Joes podcast. This is the first among many to be sure. They are going to start swallowing up all of the big stars of youtube and offer them as exclusive content on their platform. The result over at youtube, is that they realize that they have to start signing top talent to exclusive deals. Much the same way you can only watch THE MANDALORIAN on Disney Plus, now you are going to see top talent exclusively on certain platforms. For example, PEWDIEPIE just got a $100 MILLION dollar contract to do live streams on youtube. This is the start of a big land grab. Big name streaming talent is going to be bough up for exclusive deals on each of these streaming services.
The record labels are now in a pickle. As spotify heads down this road, they could easily start doing what netflix did and start going directly after artists and developing their own exclusive bands just the same way netflix started creating their own music. They are heading toward cutting the record lables entirely out of the business model. At that point, the other streaming services will follow suit and the streaming services could start buying up what’s left of the record lables. It would be entirely vertically integrated. So content creators are now a more valuable resource than ever. Now is the time to create your own audience and join the land grab!
GMC Founder Posts: 18.753
Joined: 15-August 05
From: Stockholm, Sweden
Video on spotify sure is an interesting development! Not sure how useful it will be for the small guys - but I will look into it.
Very interesting analysis as well - as his conclusion is that content creation in general (even for small guys) is on the verge to be better paid. Which I guess makes sense, as things stabilise after the music industry (as we knew it) collapsed.
GMC:er Posts: 25.297
Joined: 23-December 09
From: Atlanta, Georgia, USA
Seems like a positive thing Hope it pans out well!! Could be very cool.
Todd
QUOTE (Kristofer Dahl @ May 24 2020, 02:59 PM)
Video on spotify sure is an interesting development! Not sure how useful it will be for the small guys - but I will look into it.
Very interesting analysis as well - as his conclusion is that content creation in general (even for small guys) is on the verge to be better paid. Which I guess makes sense, as things stabilise after the music industry (as we knew it) collapsed.
Hope it pans out well!! Could be very cool.
