While Spotify’s growth has been impressive we think the adoption of music streaming is still in early innings. Spotify has compounded its leading position in recent years adding premium subscribers at twice the rate of Apple. With 35% of the global music streaming market, the company has nearly twice the market share of Apple Music, at 19%. Spotify is the category leader in music streaming with 299 million subscribers across 92 countries. It has all the makings of a company on its ways to platform dominance. With its best-in-class user experience (UX), along with class-leading music discovery and curation, so too does Spotify. Whether it is Amazon, Netflix or Peloton, all winning consumer platforms exhibit these attributes. One of the most important considerations in consumer-facing technology investing is asking whether the product alleviates pain points, reduces friction or enhances convenience. “If you focus on near-term growth above all else, you miss the most important question you should be asking: Will this business still be around a decade from now? Numbers alone won’t tell you the answer instead, you must thing critically about the qualitative characteristics of your business.” –Peter Thiel This article is excerpted from a letter by Jake Rosser, Managing Partner of Coho Capital Management.
0 Comments
Leave a Reply. |