Joshua Novick’s Post

🎵 Spotify and 🎬 Netflix may seem comparable at first glance, as they are subscription services and undisputed leaders in their respective categories of #digital #streaming content. However, they couldn't be more different. How are they similar❓ 🚀 They are both the leaders in their space: #audiovisual and #music streaming subscription services. 🏛️ Spotify was founded in 2006, Netflix launched streaming in 2007 (even though it was founded 10 years before). 💿 They both were born in the transition era from analog to digital, from CDs and DVDs (and loads of 🥷 pirating) to subscription services. 📶 They both profited from the massive increase in bandwidth at home and on mobile, as well as the surge of smartphones and smart TVs. 📈 They both went from nothing to very similar numbers of subscribers: Netflix 270 million, Spotify 239 million. How are they different❓ 🎥 Netflix created its own proprietary content, while Spotify is fundamentally an online distributor of third-party content (in particular Warner Music Group, Sony Music Entertainment, and Universal Music Group). 💰 Netflix needs to spend massive amounts of cash on producing its proprietary content (💲17B in 2024), while Spotify distributes audio content owned by creators, artists, and record labels to consumers. For every euro it earns from subscriptions and/or advertising, it distributes 70 cents to artists/labels under a "pro-rata" model. 📊 Netflix is a combination of platform and content producer, achieving a 46.9% gross margin versus Spotify's 27.6%. 🏆 Netflix's proprietary content allows it to clearly differentiate itself from Amazon Prime, HBO, or The Walt Disney Company. Many families subscribe to more than one video streaming platform due to unique content offerings. In contrast, most music streaming users subscribe to only one platform since there's little content differentiation among Spotify, Apple Music, Amazon Music, Deezer, or YouTube Music. 📉 Netflix has been growing subscribers faster, recently adding 9.3 million subscribers in Q1 2024, compared to Spotify's 3 million. 🏦 Netflix is currently valued at 4.5 ✖️ more than Spotify on the stock market: 💲280 billion versus 💲60 billion. 💸 Netflix generates 2.5 ✖️the sales of Spotify in Q1 2024: 💲9370 million versus 💲3953 million. 💵 Netflix generates almost 10✖️ the free cash flow of Spotify: 💲2137 million versus 💲225 million in Q1 2024. 🌍 The audiovisual market is significantly larger than the audio market. The audio market was $28.6 billion in 2023, with $17.6 billion from streaming, while the TV & Video market is forecasted to reach $701 billion in 2024. The video streaming (SVoD) market alone is expected to reach $108 billion in 2024 (6✖️ the audio streaming market) Spotify and Netflix may share a subscription-based model and are the leaders in their respective streaming segments, but their operational strategies and market dynamics set them apart significantly.

🎵 Spotify and 🎬 Netflix may seem comparable at first glance, as they are subscription services and undisputed leaders in their respective categories of #digital #streaming content. However, they couldn't be more different. How are they similar❓ 🚀 They are both the leaders in their space: #audiovisual and #music streaming subscription services. 🏛️ Spotify was founded in 2006, Netflix launched streaming in 2007 (even though it was founded 10 years before). 💿 They both were born in the transition era from analog to digital, from CDs and DVDs (and loads of 🥷 pirating) to subscription services. 📶 They both profited from the massive increase in bandwidth at home and on mobile, as well as the surge of smartphones and smart TVs. 📈 They both went from nothing to very similar numbers of subscribers: Netflix 270 million, Spotify 239 million. How are they different❓ 🎥 Netflix created its own proprietary content, while Spotify is fundamentally an online distributor of third-party content (in particular Warner Music Group, Sony Music Entertainment, and Universal Music Group). 💰 Netflix needs to spend massive amounts of cash on producing its proprietary content (💲17B in 2024), while Spotify distributes audio content owned by creators, artists, and record labels to consumers. For every euro it earns from subscriptions and/or advertising, it distributes 70 cents to artists/labels under a "pro-rata" model. 📊 Netflix is a combination of platform and content producer, achieving a 46.9% gross margin versus Spotify's 27.6%. 🏆 Netflix's proprietary content allows it to clearly differentiate itself from Amazon Prime, HBO, or The Walt Disney Company. Many families subscribe to more than one video streaming platform due to unique content offerings. In contrast, most music streaming users subscribe to only one platform since there's little content differentiation among Spotify, Apple Music, Amazon Music, Deezer, or YouTube Music. 📉 Netflix has been growing subscribers faster, recently adding 9.3 million subscribers in Q1 2024, compared to Spotify's 3 million. 🏦 Netflix is currently valued at 4.5 ✖️ more than Spotify on the stock market: 💲280 billion versus 💲60 billion. 💸 Netflix generates 2.5 ✖️the sales of Spotify in Q1 2024: 💲9370 million versus 💲3953 million. 💵 Netflix generates almost 10✖️ the free cash flow of Spotify: 💲2137 million versus 💲225 million in Q1 2024. 🌍 The audiovisual market is significantly larger than the audio market. The audio market was $28.6 billion in 2023, with $17.6 billion from streaming, while the TV & Video market is forecasted to reach $701 billion in 2024. The video streaming (SVoD) market alone is expected to reach $108 billion in 2024 (6✖️ the audio streaming market) Spotify and Netflix may share a subscription-based model and are the leaders in their respective streaming segments, but their operational strategies and market dynamics set them apart significantly.

🎵 Spotify and 🎬 Netflix may seem comparable at first glance, as they are subscription services and undisputed leaders in their respective categories of #digital #streaming content. However, they couldn't be more different. How are they similar❓ 🚀 They are both the leaders in their space: #audiovisual and #music streaming subscription services. 🏛️ Spotify was founded in 2006, Netflix launched streaming in 2007 (even though it was founded 10 years before). 💿 They both were born in the transition era from analog to digital, from CDs and DVDs (and loads of 🥷 pirating) to subscription services. 📶 They both profited from the massive increase in bandwidth at home and on mobile, as well as the surge of smartphones and smart TVs. 📈 They both went from nothing to very similar numbers of subscribers: Netflix 270 million, Spotify 239 million. How are they different❓ 🎥 Netflix created its own proprietary content, while Spotify is fundamentally an online distributor of third-party content (in particular Warner Music Group, Sony Music Entertainment, and Universal Music Group). 💰 Netflix needs to spend massive amounts of cash on producing its proprietary content (💲17B in 2024), while Spotify distributes audio content owned by creators, artists, and record labels to consumers. For every euro it earns from subscriptions and/or advertising, it distributes 70 cents to artists/labels under a "pro-rata" model. 📊 Netflix is a combination of platform and content producer, achieving a 46.9% gross margin versus Spotify's 27.6%. 🏆 Netflix's proprietary content allows it to clearly differentiate itself from Amazon Prime, HBO, or The Walt Disney Company. Many families subscribe to more than one video streaming platform due to unique content offerings. In contrast, most music streaming users subscribe to only one platform since there's little content differentiation among Spotify, Apple Music, Amazon Music, Deezer, or YouTube Music. 📉 Netflix has been growing subscribers faster, recently adding 9.3 million subscribers in Q1 2024, compared to Spotify's 3 million. 🏦 Netflix is currently valued at 4.5 ✖️ more than Spotify on the stock market: 💲280 billion versus 💲60 billion. 💸 Netflix generates 2.5 ✖️the sales of Spotify in Q1 2024: 💲9370 million versus 💲3953 million. 💵 Netflix generates almost 10✖️ the free cash flow of Spotify: 💲2137 million versus 💲225 million in Q1 2024. 🌍 The audiovisual market is significantly larger than the audio market. The audio market was $28.6 billion in 2023, with $17.6 billion from streaming, while the TV & Video market is forecasted to reach $701 billion in 2024. The video streaming (SVoD) market alone is expected to reach $108 billion in 2024 (6✖️ the audio streaming market) Spotify and Netflix may share a subscription-based model and are the leaders in their respective streaming segments, but their operational strategies and market dynamics set them apart significantly.

🎵 Spotify and 🎬 Netflix may seem comparable at first glance, as they are subscription services and undisputed leaders in their respective categories of #digital #streaming content. However, they couldn't be more different. How are they similar❓ 🚀 They are both the leaders in their space: #audiovisual and #music streaming subscription services. 🏛️ Spotify was founded in 2006, Netflix launched streaming in 2007 (even though it was founded 10 years before). 💿 They both were born in the transition era from analog to digital, from CDs and DVDs (and loads of 🥷 pirating) to subscription services. 📶 They both profited from the massive increase in bandwidth at home and on mobile, as well as the surge of smartphones and smart TVs. 📈 They both went from nothing to very similar numbers of subscribers: Netflix 270 million, Spotify 239 million. How are they different❓ 🎥 Netflix created its own proprietary content, while Spotify is fundamentally an online distributor of third-party content (in particular Warner Music Group, Sony Music Entertainment, and Universal Music Group). 💰 Netflix needs to spend massive amounts of cash on producing its proprietary content (💲17B in 2024), while Spotify distributes audio content owned by creators, artists, and record labels to consumers. For every euro it earns from subscriptions and/or advertising, it distributes 70 cents to artists/labels under a "pro-rata" model. 📊 Netflix is a combination of platform and content producer, achieving a 46.9% gross margin versus Spotify's 27.6%. 🏆 Netflix's proprietary content allows it to clearly differentiate itself from Amazon Prime, HBO, or The Walt Disney Company. Many families subscribe to more than one video streaming platform due to unique content offerings. In contrast, most music streaming users subscribe to only one platform since there's little content differentiation among Spotify, Apple Music, Amazon Music, Deezer, or YouTube Music. 📉 Netflix has been growing subscribers faster, recently adding 9.3 million subscribers in Q1 2024, compared to Spotify's 3 million. 🏦 Netflix is currently valued at 4.5 ✖️ more than Spotify on the stock market: 💲280 billion versus 💲60 billion. 💸 Netflix generates 2.5 ✖️the sales of Spotify in Q1 2024: 💲9370 million versus 💲3953 million. 💵 Netflix generates almost 10✖️ the free cash flow of Spotify: 💲2137 million versus 💲225 million in Q1 2024. 🌍 The audiovisual market is significantly larger than the audio market. The audio market was $28.6 billion in 2023, with $17.6 billion from streaming, while the TV & Video market is forecasted to reach $701 billion in 2024. The video streaming (SVoD) market alone is expected to reach $108 billion in 2024 (6✖️ the audio streaming market) Spotify and Netflix may share a subscription-based model and are the leaders in their respective streaming segments, but their operational strategies and market dynamics set them apart significantly.

🎵 Spotify and 🎬 Netflix may seem comparable at first glance, as they are subscription services and undisputed leaders in their respective categories of #digital #streaming content. However, they couldn't be more different. How are they similar❓ 🚀 They are both the leaders in their space: #audiovisual and #music streaming subscription services. 🏛️ Spotify was founded in 2006, Netflix launched streaming in 2007 (even though it was founded 10 years before). 💿 They both were born in the transition era from analog to digital, from CDs and DVDs (and loads of 🥷 pirating) to subscription services. 📶 They both profited from the massive increase in bandwidth at home and on mobile, as well as the surge of smartphones and smart TVs. 📈 They both went from nothing to very similar numbers of subscribers: Netflix 270 million, Spotify 239 million. How are they different❓ 🎥 Netflix created its own proprietary content, while Spotify is fundamentally an online distributor of third-party content (in particular Warner Music Group, Sony Music Entertainment, and Universal Music Group). 💰 Netflix needs to spend massive amounts of cash on producing its proprietary content (💲17B in 2024), while Spotify distributes audio content owned by creators, artists, and record labels to consumers. For every euro it earns from subscriptions and/or advertising, it distributes 70 cents to artists/labels under a "pro-rata" model. 📊 Netflix is a combination of platform and content producer, achieving a 46.9% gross margin versus Spotify's 27.6%. 🏆 Netflix's proprietary content allows it to clearly differentiate itself from Amazon Prime, HBO, or The Walt Disney Company. Many families subscribe to more than one video streaming platform due to unique content offerings. In contrast, most music streaming users subscribe to only one platform since there's little content differentiation among Spotify, Apple Music, Amazon Music, Deezer, or YouTube Music. 📉 Netflix has been growing subscribers faster, recently adding 9.3 million subscribers in Q1 2024, compared to Spotify's 3 million. 🏦 Netflix is currently valued at 4.5 ✖️ more than Spotify on the stock market: 💲280 billion versus 💲60 billion. 💸 Netflix generates 2.5 ✖️the sales of Spotify in Q1 2024: 💲9370 million versus 💲3953 million. 💵 Netflix generates almost 10✖️ the free cash flow of Spotify: 💲2137 million versus 💲225 million in Q1 2024. 🌍 The audiovisual market is significantly larger than the audio market. The audio market was $28.6 billion in 2023, with $17.6 billion from streaming, while the TV & Video market is forecasted to reach $701 billion in 2024. The video streaming (SVoD) market alone is expected to reach $108 billion in 2024 (6✖️ the audio streaming market) Spotify and Netflix may share a subscription-based model and are the leaders in their respective streaming segments, but their operational strategies and market dynamics set them apart significantly.