Alejandro Suárez Sánchez-Ocaña. Entrepreneur and private investor sector Internet and New Technologies.
Spotify is a great product, absolute, and who has penetrated deep into millions of Internet users across Europe.
In my opinion when something is used by millions of people around the world, as is the case, it is not by chance, but that it is responding to a need for users.
My take on Spotify requires a disclaimer. I am one of the investors Yes.fm that Spotify is direct competition in Spain and indeed we launched months before they come out, it would clearly be happier if they would have done worse. I notice that no one tell me that my view may be biased; possibly be so, since I have interests in the sector.
The labels die, and have little need to reinvent itself, very little desire to do so. The change in content consumption have been caught on the wrong foot, and even today would be happy to sell cds at 18 Euros and disappear if digital music consumption, to fulfill all their ills.
Spotify has in my opinion some things extremely well, but also in other deceived generating the perception that music consumption was normal and sustainable. This has used techniques are not new to the user closer, wanting to make dependent, until it has been sustainable and had to stop paying the party and cut the "free beer."
This is not a new marketing technique, and used it to promote themselves and installed. Knew that was not sustainable, especially in southern European countries, where to put it finely, everyone assumed that the percentage of people who would pay for the service is much lower than in northern countries, especially the Nordic.
If you think there has been part of this tactic has been bad for the industry, for new streaming service, and now turns against Spotify as a boomerang, and was simply not hide the truth.
Whenever a streaming service can hear a song record companies charge for it. I mean if you listen to 100 songs a month, the record becomes 100 times. It is considered microventa. Then that occurred when using Spotify based on advertising for X hours a day, the party and make them pay for fidelizarte consciously, want you to want, want to be the Apple of the music. That does not hold economically and know also stresses that music is a free good, and especially the user is happy thinking that the announcement that put paid to the party and "spotify should be grateful because I use and earn money with me. "
But then, I hear advertising does not pay the party?
Not at all. Even record covers costs (very high), and streaming (expensive), very few countries do, and certainly in Spain and does not cover 10-20% of these costs. For this reason, companies that want to have millions of users streaming, require minimum 15-20% of users are payment, otherwise the system does not hold.
The stark reality is that in Spain, for every million users can pay for these services 10000-20000, ie a small critical mass. If you take music, you have a huge critical mass of subscribers, the house of cards falls apart, and you have to go to venture capital funds seeking to "be the world's leading music streaming." You can run one, two or three times, but then there is a D-day in which you require to stop giving, encares the situation and be honest with the user, you explain that you were paying for the party and now it's up to him. You know I will feel cheated, green and you will cease to use you many, especially to hurt your brand ... but things that are not sustainable have an end, because you can not lose money entrepreneurially lifetime.
Something very similar happened to LastFm , who decided to cut their services in countries like Spain with few subscribers actually only kept the service opened in 2009 in a few countries, UK, Germany and USA, where the mix of advertising + subscriber was profitable . Users "full free" migrated to Spotify at the moment. In 2010, for the same reason they left the mobile streaming
I have the perception that Google buy Spotify , and if this happens again the "free beer" for Silicom Valley giant can be very useful this operation. I do not like frankly, I could lengthen a false perception that music is not cost, regardless, because they say, that if Google buys Spotify is not good news for any product in the world streaming.
If Google buys, save a company, and makes the "youtube" music, sets foot in a market owned by Apple, launches a nod to millions of users, is a good advertising medium, and they are involved in selling, that's what they do very well, and a product like Spotify integrated into the Google search engine would be tremendous.
This would also be a story that would piss even more to the so-called record companies, in fact I think that is why if you have a certain charm
Nobody knows if that will happen, but if so, it may last a few years and go back to thinking that music is free for a while until it is again untenable. Eye, which also would make perfect sense in the world to buy Apple Spotify .
You always have the option to download. I am not a moralist, I pay more people interested in these services because of my interest in them, but each has its own free choice, not I who take a talk to anyone. I myself have downloaded a thousand times.
I just wish that everyone knew that the music you hear in Yes.fm in Spotify, or any legal streaming service on demand etc is not free, it charges the SGAE, Promusicae, record ... and I think Spotify, which brand level has done wonderfully, but one day was very clear that the party had to end, and as it was sincere and not explained well, many people have been pissed.
In its announcement on the blog (which by the way, do not say you cut open bar, but you give away less drink per month), the comments of some no waste :
1 week ago geekermo said:
Bye bye Spotify.
1 week ago araklan said:
Bye bye spotify ...
Im beginning to save my lists ....
1 week ago patrux89 said:
It was nice while it Lasted.
1 week ago xthief said:
Bye bye Spotify
A user is a man who values your service, it would pay to use the modality or promotional offer (Free). Abuse of promotional opportunity, and unlimited by decree, not create users but parasites.
If you received free grateful these years, you loved and idolized service Spotify, and now because you have limited consumption, you throw pests, and offends you're not willing to pay 4,99 EUR 9,99 EUR per month or in the form higher (or stay in the free form, with its limitations), may be you, as a user that does not interest the company, not the company has fallen out of favor for you.A few days ago I had breakfast with the good face of Frederic Terrien , Director General of Yes.fm in "Business Digest". The interview is one of those that will not leave you indifferent, at first original owner who has made me much: "The Chill Out Music can make us forget some of the crisis." The interview is very original because it is a perfect profile Frédéric, who does not like to go out too much in the media and generally preferred to stay in the background. Discuss things sure many of you know we seem curious. I've known him since 2001, is French and has 16 years in Spain, speaks perfect Spanish and seems to miss his homeland "I stay with Spain, if you see people here and sometimes even happy going to work" , "here is best enjoyed at leisure, work, or family. We have a daughter born in Spain and stay. " It's one of those people that from minute one connect perfectly and the largest maker of that for more than a year and a half I embarked on the project Yes.fm.
Today as I write this is Christmas, December 25 fun fun fun , A day that I usually take with some calm and barely answer if you want an email. I did not want to stop writing, I will publish tomorrow, December 26, because the character and the person worthwhile. I recommend reading the interview that you can download from here . Today eat with Frédéric Moraleja in for a change in Aspen , I've lost count of the number of times we've eaten there last year, we may expect the de-almost-always, a magnificent "black rice with squid, as in Altea "and input a little tumaca Iberian ham with bread. Large Aspen, it also helps us to forget the crisis!. If my calculations do not fail, I will laugh or slightly pull the ears for having spent these lines. To give one sticks to the interview the awful "sculpture" blue background photo in the courtyard of the building where it is located Yes.fm. Every time I walk through the door of the building Yes.fm mentally dedicate a few seconds with a half smile, "fuck, how awful, who will put this goop here?" Every day the media are focusing more on the draft Yes.fm , which we thank everyone at the team Yes. These last three days we have had a presence in the Time Magazine and Journal 5 Days with interviews and Christophe Cassand Kiko Fuentes. You can see here the pdf of time and 5 days . Soon begin unconventional online campaign, where we hope to bring more from Yes to all Internet users within our communication strategy, which now begin to devote more resources. This is the tutorial Yes.fm in 5 minutes. It is based on the presentation on our web and interactive tutorial (here in video format without activating interaction). I think it's a great option to see the work we are doing and to see the web and some of its functionality. I recommend it because it is a demo on our website. Hope you like: Tutorial www.yes.fm from www.yes.fm on Vimeo . By the way thanks to Johann Wald, for recording the video provided. Incidentally Johann Cuatrosfera presented in Four Kira Miro and I had suggested this to the tutorial Caught ... but maybe too much attention
The blog of Alejandro Suarez.