Iovine on the Music Business Going Into 2020
And the streaming music services are utilities — they’re all the same. Look at what’s working in video. Disney has nothing but original stuff. Netflix has tons of original stuff. But the music streaming services are all the same, and that’s a problem.
What happens when something is commoditized is that it becomes a war of price. If you can get the exact same thing next door cheaper, somebody is going to enter this game and just lower the price. Spotify’s trying with podcasts. Who knows? Maybe that will work.
The fact that exclusives have not taken off with music streaming services is great for consumers, but it does make we wonder how long this can last. The cost of music is basically free, with many (especially younger) people getting it from YouTube, and things like Apple Music or Spotify are just more convenient ways to listen.