
Why Are Record Companies Dumping Their Spotify Stock? – Office of Copyright - Osiris30
http://copyright.nova.edu/spotify-stock/
======
onetimemanytime
>> _If we cannot successfully earn revenue at a rate that exceeds the
operational costs, including royalty expenses, associated with our Service, we
will not be able to achieve or sustain profitability.”_

This is very thoughtful stuff. And people say MBA are no good. Or team of
MBAs.

Record companies might keep them barely alive, or alive enough to leech as
much as possible from them. Killing the host might not be smart, unless a new
service is created.

------
slededit
They aren't hedge funds and shouldn't be speculating in public companies.
Shareholders of record companies want exposure to music labels - not
streaming. Very few conglomerates work long term.

If the shareholders want to own a different business they can buy the shares
on their own.

~~~
cardiffspaceman
The article says,

> _Except that WMG is not a stand-alone music company. It is wholly owned by
> the investment firm Access Industries. Which is very much in the business of
> holding long term equity stakes._

If there is a difference to the reader between a speculator and an investor,
this is an investor. The justification may be that the investment has made as
much as it could make and they wish to put the money to use elsewhere.

The angle in the article is that they are _dumping_ Spotify because they think
it's toxic waste or they want to 'toxify' it. But it could just be profit-
taking.

> _If the shareholders want to own a different business they can buy the
> shares on their own._

Always true, of course.

