We’ll be honest: the likelihood of Spotify spinning out its RapCaviar playlist rather than keeping the brand to itself is slim. Yet writer Dan Runcie’s Trapital blog has published a thought-provoking post on how and why RapCaviar might work as a standalone company that still collaborates closely with its parent.
“Both Spotify and RapCaviar would thrive with increased flexibility as standalone entities that partner with each other to achieve their distinct goals,” claimed Runcie. “Once a playlist like RapCaviar can generate meaningful revenue on its own, Spotify should be honest about whether it’s holding itself and the playlist back.” The piece makes a comparison to curatorial brands like Trap Nation, which operate independently and across multiple streaming platforms – YouTube included.
Runcie’s theory is that RapCaviar could use the latter platform to build its audience and engagement, then – like Trap Nation’s parent company The Nations – parlay that into more of a label-like entity. “If RapCaviar could amass 40 million YouTube subscribers, that would yield $6 million annually from ad revenue alone… RapCaviar can offer playlist placement as an incentive to joining their team over other labels,” he claims. “If RapCaviar earns $6 million from ad revenue and follows that 30% trend, then it could earn nearly $3 million from its record label with the chance to earn more if the artists succeed…”
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