Google struggled for years with the question of what its consumer subscription business should be, as it did not have consumer credit cards across its platform despite a billion daily users. The challenge was in determining what business to pursue to have a subscription model with consumers.
An analogy is drawn between the music industry and a burning building, highlighting the challenging and painful nature of the business.
In this episode, the guest discusses the evolution of the music business, from making money through record sales to streaming and downloads. He shares that he makes most of his money through streaming and downloads even today.
Economic models in non-music audio are becoming important for Spotify, where investing in core talent and content creation is vital for its margins to improve. Unlike Spotify, Amazon has broader strategies to enhance the company's value, while Spotify relies heavily on its non-music audio for improved margins.
Death Row Records had a rapid rise to success with popular albums like The Chronic and Doggy Style as well as successful soundtracks. The company made millions in revenue in its first few years of business and changed the game for the music industry.