Gearslutz.com - View Single Post - How does Spotify make money for the record industry?
View Single Post
Old 15th March 2009   #6
Whitecat
GS Community Manager
 
Whitecat's Avatar
 
Joined: Jan 2006
Location: Surrey / London
Posts: 6,115

To expand upon the OP's original points (for those just joining us) Spotify sells advertising - radio-style 30s spots and banner ads that slide into the program every now & again.

However, even with my limited knowledge of all this, it sure doesn't seem like they're selling ENOUGH advertising to make it worthwhile. Half the ads that play are for other album/artists, which would be paid for by the ad agencies contracted by - you guessed it - the record labels. It's like the snake eating its' tail.

That said, it is still in beta I guess, so perhaps the variety of ads will increase heavily once Spotify can show potential advertisers what the demographic/uptake is like.
__________________
Scott J. - Gearslutz.com Community Manager

my other job: http://www.whitecat.tv - film/web/tv/video/audio post & music

Gear for sale!

@WhitecatTV
Whitecat is offline   Reply With Quote