Spoitfy CEO Daniel Ek was unusually candid during a Quora Q &A earlier this week. His assertions included that Spotify almost single handled saved the entire music industry. Here are some excerpts:
How do you respond to some artists’ claims that music streaming services are harmful to the industry?
“Well, let’s start with the big picture – the music industry is growing again… Look, we pay the great majority of our revenue back to the music industry. And as we grow, that revenue is really making a difference. Many people don’t realize that the music industry was in decline throughout all the download years (with a one year exception in which it was basically flat). Now, finally, after years and years of decline, music is growing again, streaming is behind the growth in music, and Spotify is behind the growth in streaming. So ultimately, we think the best measure of our contribution to the industry will be results – results that will give thousands and thousands of artists, songwriters, producers and so on the chance to do what they love, and their fans love, while being paid faiRly for doing it. “
Soundcloud is losing money, and Pandora is looking for a bailout, what does this mean for Spotify?
“We have a very different business model in that Spotify is predominantly subscription. With subscription comes predictable revenues. So we feel comfortable investing in new markets, investing in our product and our content, because we know we have a robust, growing business model behind us.”
FACT CHECK: 70% of Spotify’s 100M users do not pay to access the service.
What are some interesting results you’ve learned analyzing Spotify’s user data?
[Hypebot]Most people still describe their taste as either “everything” or a specific genre. The truth is, in our actual listening habits, most of us are very specific about what we want to listen to, but not by genre. Our habits and moments are what define our listening more than anything else. People want one kind of music when they’re getting ready to go out on the weekend, another for dinner at home, something else for working out, sleeeping, and so on. And this “breaking down” of genre barriers opens up the way to much better, more interesting and more relevant programming – and music discovery.