– Star power
– Multimedia outlets and events
These three pieces of data will be evaluated based on ROI and longevity. In the music streaming service, subscribers are key. Using simple math to explain why, imagine gaining $10 from each paying subscriber. In his case, it is roughly 80 million paying subscribers. This means that on a month to month basis we are gaining $800 million dollars in subscribers. In analyzing this I must note that operating and expansion costs weigh heavily on the profit. By increasing the star power involved with Spotify will not only bring new subscribers but give them a one of a kind experience with a variety of music, exclusive content, and immaculate sound.
I see the acquisition of tidal having a ROI of 2 years. This acquisition will cost $650 million. We plan to not only continue to expand in our market but use this acquisition as a jump start in gaining a foothold as a newly public company.
However, since we are expanding and operating costs on a month to month basis are still outweighing our profit, I understand the financial risk involved. The risk is still there and in my future presentation I will be explaining why.