Want to See the Music Industry's Future? Read This. Fascinating.

[Anderton]

This article is from someone who understands music and understands finance, and explores the implications of investments being made in Spotify, SoundCloud, etc. While that might sound deadly dull, he really knows how to write, and really knows how to explain the reality of this world. If the future of the music biz interests you at all, it's a brilliant exposition. Highly recommended.

[Phil O'Keefe]

Really good article!

 

How can they keep a business like Spotify running with that much red ink year after year? Obviously it's the venture capital making it possible, but how do they keep getting that kind of funding, and what are the investors seeing as the potential payday?

[RoadRanger]

It's the old dot com bubble all over again. The issue is that there is way more investment capital available than decent investments.

[Anderton]

It's the old dot com bubble all over again. The issue is that there is way more investment capital available than decent investments.

 

I know that over 80% of all acquisitions fail. I suspect what's happening is these are considered relatively inexpensive investments so if one hits the jackpot, so much the better. And if not...losses that can offset gains for tax purposes.

 

 

[Notes_Norton]

Most businesses fail, usually in the first 5 yeas. At least that's what I was taught in Economics class. I suppose that's an average between the ones that fail in the first year and the ones that fail in the 10th.

 

I don't think anyone knows how to make recorded music profitable again (yet?). But if someone figures it out, big profits could be his or hers.

 

Investing in a business is always a gamble I played the stock market a little, and wasn't very good at it.

 

Notes