Spotify’s Stock Is Risky Because the Music Industry Is Not Changing Fast Enough
Spotify’s revenue is rising, and it has more listeners—96 million paid subscribers and 207 million monthly active users—than any other music service. The problem is that its costs to license that music are high, with almost 70% of its revenue going toward content costs. There is little evidence it can reduce those costs anytime soon.
Last night, Ian and I began watching a Bill Murray movie called "Rock the Kasbah." The opening exterior scene: A Van Nuys courtyard apartment, with a pool in the middle. 🎬
The interior, Bill Murray's cluttered office/apartment. Photos of his previous fame behind the desk he sits at, while auditioning new "talent." 🎬 "Hey, that's Burton!" I yelled out to Ian, Burton's friend and former band mate. "Ha! Bill Murray's Photoshopped into it."
Ian froze the clip and took a beat to examine the photo. "It is. That's Bill Wallace, Domenic Troiano, Burton, and Bill Murray's probably standing in Garry Peterson's place...The Guess Who, the last iteration." 🎬
*** An excerpt of a review from Randy Cordova of The Republic: 🎬
In “Rock the Kasbah,” Bill Murray plays Richie Lanz, a washed-up music manager who enjoyed some glory days in the ‘70s and ‘80s. The black-and-white photos on his wall show him with the likes of Burton Cummings and Michael Bolton, but he now handles karaoke singers and hustles no-talents for money. *** The Guess Who, last version: Bill Wallace, Domenic Troiano, Burton Cummings, Garry Peterson (replaced by Bill Murray). 🎬