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Posts by Michael Scrip

Ummmm.... Clinkle ?That name might have been part of the problem.I know names are tough to come up with... but that has got to be one of the worst.Meanwhile... Square named their app "Cash"
How cheap is cheap?Plus... Apple can't make it too good... or else people will stop paying $649 for the top model.But it also can't be too bad either... or else it will tarnish Apple's reputation.It's a dangerous game... and that's probably why Apple isn't playing it.I know people hate car analogies here... but indulge me:This is why BMW doesn't make a $16,000 car. They have a standard they'd like to adhere to.Meanwhile... Honda is perfectly happy to sell you a $16,000...
Let's not forget that many (most?) Android phones sold around the world are of the $50 or $100 variety.Those kinds of markets have never been Apple's focus... and I don't think they need to be destroyed.Apple's entry level laptops are $900... while their competitors have laptops for $200. Clearly Apple isn't worried about that.So I don't see why Apple should be worried about the inexpensive phone market either.
Yes... a MAXX version of iPhones and Macbooks!The problem with Mophie-style cases is that while they double the battery life... they more than double the thickness because it's not an integrated solution.The iPhone 6 is 7mm thick.Its compatible Mophie case is 17mm thick. But if Apple designed a bigger battery themselves... the whole device might only be 10mm because it would be built-in. I'd allow it!I feel the same way about the new Macbook. They made it thinner than...
$4/month is certainly cheaper than $10/month... but those "special extra features" are exactly what you pay the higher price for.Rdio Select is a "radio" service with some downloading.... while Rdio Unlimited and Spotify are true "on demand" services with unlimited downloading.I think it's cool that Rdio is now offering a cheaper plan... but it's really a different type of service compared to other full-featured services.Yes... you're paying less... but you're also getting...
The latest reports in May 2015 said Spotify had a $197 million loss in 2014 following a $102 million loss in 2013.I'm assuming these reports are for the entire company... not just in certain markets.Sure... the record companies get paid from the music licensing. But that wasn't what I was talking about originally.My main point this whole time was the fact that Spotify is not profitable... and that VCs have invested over $800 million so far.When do the VCs get their share...
Ah... I see. The record labels got some shares of Spotify early on. They bought 18% of Spotify for $14,000. I never knew that.That was nearly 6 years ago... and long before Spotify got hundreds of millions of dollars in VC funding.My point is... nobody has made money from Spotify yet.Not the record labels with their 18% stake.... nor the investors who have pumped in over $800 million.Spotify will have to earn a profit someday to pay everyone back.There are a few ways...
I'm not sure I follow. Spotify has investors... and they also pay the record companies for music licensing. Those are two different entities.Spotify received tons of venture capital money from investors. There were 17 VC firms who invested in Spotify.They previously got $537 million in earlier funding rounds... and they recently received an additional $350 million in funding.Those VC firms hope, someday, that Spotify will eventually make money so they will get their...
Streaming will be the future... only if these streaming services figure out how to make money. It's not that they don't know how... it's just that it's very difficult to do.Spotify brought in $1.2 billion in revenue... but they had to spend $980 million just for the music rights. And another $200 million to pay their staff... plus marketing and other costs.When it was all said and done... Spotify lost $180 million. And that was an even bigger loss than the previous...
Possibly.But I've heard VC people say that services like Spotify might never become profitable. It's just a very expensive business to be in.Spotify had €1.08bn in revenue... but they had to pay out €882m just in music licensing. And those costs are continuous... it's not something that you buy once and keep forever like a piece of equipment.Their biggest expense is the music itself.... and it's a huge expense.And even if they grow and add subscribers... their costs also...
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