Curated Insights 2020.03.20

Spotify: The ambient media company

We believe the market that we’re going after is going to be at least a billion, probably two or three billion people around the world. And if we are going to win that market, I think we’d have to be at least a third of that market. So we’re talking about somewhere between 10x – 15x of opportunity left.

The battle for sustained success in the ambient media landscape will come down, in many ways, to balance. Balancing long term vision with the ability to react nimbly to near term developments. Balancing the need to address users at scale with the importance of the human element in creation and curation. And, for many companies, balancing commitment and investment to audio with broader business initiatives. On all three counts, Spotify comes out ahead.

If it takes a number of months or potentially years to make your money back, that gives investors time to take advantage of higher expected returns. For those who are net savers, this means plenty of time to deploy capital at lower prices than we were being offered in recent months. For those with diversified portfolios who won’t be making new contributions, this means opportunities to slowly rebalance into the pain.

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