Industry, in my last discussions on IROKING, IROKO and other digital distributors here, I said the masses could be fooled but when it came to industry people, we had to ask the tough questions and cut to the chase. We were not allowed to get distracted with “millions” or “billions” views or dollars thrown at us because ultimately, the money has been borrowed, it needs to be paid back and the business has to generate profit. We can’t assess the profitability of a business when the CEO is yet to show us the financial statements to back aggressive and assertive claims of being #1, barely two years into the business and under challenging circumstances of operating out of Africa and around the globe with huge operating costs. He is not required to but if he insist on letting us know he is smarter, has it all figured out etc., then of course we have to say, “okay, show me the money.”
My points are further underscored with this latest news about Spotify.
(Folks, being a business owner or operating a business) is tough and many times, we focus on looking at others instead of watering our own grass. However, “the more money we have, the more problems.” Any business owner, independent artist, filmmaker or creative talent has to always think about these issues that affect the bottom line.
Very interesting times, in the digital distribution space, ahead.
Spotify Is Now Asking Investors for More Cash . . .
“There’s a simple reason why this is happening, of course: Spotify is burning a ton of cash at an extremely aggressive and probably unsustainable rate. According to recently-released financial statements, the company has burned through more than $206 million since 2008 alone, which doesn’t even count 2013. Total financing, since inception, is ‘just’ $288 million, according to Crunchbase.
Which means Spotify’s running out of money, and needs a lot more to keep this bonfire raging. According to a report from Swedish newspaper Dagens Industi, Spotify is seeking a massive investment that would value the company at more than $5.3 billion. . .”
Digital Music News has the full story.
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