Big question: Can a direct-to-consumer music service (like Spotify) cut out the record labels?
Revenue going to the artist:
1) Major label — 15–20%
2) Spotify direct — 50%
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Time spent with audio according to Edison Research:
1) AM/FM radio — 47%
2) Pandora — 5%
3) Spotify — 4%
4) Podcasts — 3%
5) Other — 41%
Much of the conversation on cord-cutting is focused on consumers trying to save money.
Here are some drawbacks for high-end consumers:
1) Delay — Live content can be delayed by 30+ seconds
2) Choppy video — Digital cable is 60 frames per second vs. 30 for most streaming services.
3) No surround sound — Dolby Digital is not supported with most streaming services.
Streaming is now the dominant platform for music consumption.
Usage up 76% year over year per Nielsen.
Big news: Spotify went public last week and is currently valued at $27B!
How Spotify makes money:
1) Subscriptions — 90%
2) Advertising — 10%
Pandora is making a big move in the programmatic audio front with their acquisition of AdsWizz for $150M.
Flashback: Pandora Taps Neustar To Build New CRM
