What the Music Business Can Learn from Disney+'s Subscriber Success

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Could a record-label-run streaming service, or new release and pricing models, emerge in the wake of Disney’s success?

. Neither worked. It takes that tech-entrepreneurial mindset to see and pursue the opportunity that Daniel Ek recognized — and his company deserves its share of the pie.”

Person 1: “So why can’t the majors pull their content now, kill off Spotify and its rivals, and take back this margin? Couldn’t they just force us all to subscribe to their own service directly?”servicing more than 250 million paying subscribers among them at the end of 2019. Would you really risk killing that cash cow just to save a bit of margin?”

Now, the runaway success of Disney+ has made that final question seem less rhetorical — and frankly less dumb — than it was a few weeks ago. Disney, obviously enough, pulled its entire catalog from rival services such as Netflix ahead of the launch of Disney+, enabling the service to live up to its promise of being “the exclusive home for your favorite movies and TV shows.

would pay more than $9.99 per month for a “streaming service that truly meets their needs.” A further report from U.K. multimedia consultants OC&C concluded that more-sophisticated streaming pricing would unlock additional revenue for the music business — especially by serving fans of specific artists and/or genres additional content for

 

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