Analysis

Rdio boss: streaming music is ‘a retail business not an internet business’


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Streaming service Rdio has never said how many users it has, let alone subscribers, but its CEO Anthony Bay is using its underdog status to speak out increasingly candidly about the streaming market and his company’s rivals. As shown by his latest interview with Music Ally.

Bay took aim at Spotify’s business model. “This is a retail business, and that’s the first thing you have to remember. It’s not an internet business. What we do, what Spotify does: it’s a retail business not an internet business,” he said.

The difference? Internet companies don’t (usually) have the same kinds of content licensing costs, according to Bay. “But this [streaming music] business is more like retail: your margins are not high, but they’re understood – they’re in the high 20s to 30s and that’s not moving a ton… That’s where you have to design your business model around that structure, and learn to be incredibly efficient in terms of your cost structure.”

Stuart Dredge

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