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Spotify warns industry off ‘bad deals’ with telcos


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Today’s Financial Times has an interesting piece on how streaming music firms are looking to do more deals with mobile operators, ISPs and hardware manufacturers to get their services in front of consumers. “Those deals with internet service providers and automotive manufacturers to distribute those services to their customers is the way to the mass market,” says Rhapsody president Jon Irwin, before admitting that sealing these deals may involve some sacrifices. “We are going to provide extra value to drive volume – we are going to be willing to take less of a margin.” The FT contrasts these views with those of Spotify’s chief content officer Ken Parks. “We are happy not to do bad deals with carriers … We are being asked to deeply discount and we have to convince our content partners to do the same. There is a willingness to do those sorts of things, provided the volumes [of subscribers] are sufficient and more-or-less certain.”

 

Music Ally

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