Comment This analysis doesn't actually hold up... (Score 4, Interesting) 93
The obvious slant here is to say that Spotify is just doing what Facebook and Youtube are doing -- algorithm selects content to generate "engagement" rather than actual enjoyment, in turn to drive more user time spent on the site, so that they can sell more ads. Except that Spotify doesn't make most of their money with ads, something like 80% of their revenue is from subscription fees so that doesn't really hold up. There's very little "network effect" in music services, about the only thing that keeps me using Spotify over other streaming options is that they've got a good idea of what music I like and can find new stuff that matches it (or, more commonly, old stuff that I just didn't discover when it was new), and that's precisely what the article is claiming Spotify DOESN'T do.