Jun 12, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Stay on top of breaking financial news by becoming a member of public carries brigade blog on the financial exchange should dot com and sign up today. Many view use and enjoy Spotify but isn't as good investment actually owning the company. Galileo Russell is with seeking alpha Galileo thanks for joining us. Yeah. Galileo at a competitive segment no question about that but Spotify is a big player what's the bull case for enjoying the cash flow. As well as the two news. I think the bogey is that there's sort of a new model that it into three where air it is record labels where and oh out of 50. Are people you know and Ebert it's packed with art directly. And eventually in Google Wave from licensing from the big wreck label I guess. Streaming directly from artists. I mean they have bigger profit margins and musicians are higher royalties. And so right now they're ordering a transitional you're getting away from the record label it had to be under their own immediate directly. A burning out a long term bull story. I guess the concern here would be as a standalone company what is the mole. That protects a Spotify like I I just wonder why couldn't someone else do this. And and make them insignificant. Yep so are actually recently switched from Amazon either that Spotify whether that he is a that they are the darker features that are really good actually eat eat eat there. And so that's something that I didn't hear it on the other forms I think part of their vote that that is he independent artist a way to get covered. That got me in the and it art armor are more. And then not urban network effectively you know more people listing of all the new artist or a sort of our org for the biggest audiences. Think there's a little bit of a network effect vote there but you bring up a good point which is they're competing with apple and Amazon. Which that way bigger budget and they view and out there that's kind of the big wreck on the right in the back. You can't bear competition. Or what are the chances that apple or Amazon says gonna write a check out of petty cash here and take you up. I'd entered a period it can't sit back after an if you look at the right they'll. I only around five I'm old. On which appears something like that flick you know which is around eater and I'm right field despite being a lot bigger I think part of our rights record be it isn't that expensive. I think back and make a lot of as a multiples revenues are they profitable. Now they're running at about three in although they deeply positive. But they are on board vote here real profitability I would imagine that as they can healing here we are that he called incremental profits go to the bottom line. Yeah I just this really sounds like something that longer term go Leo. Might be something that'll larger company would wanna offer as part of the total entertainment packaged it doesn't seem to make sense longer term. Yeah that doesn't make a lot of sense although I'll get it offered it fighter and it and go beyond. Mean you'd pick you think about all the needed. They know who the player. I think they can use that help artists at a concert in the that you Albert on or exit the band was in on our side. A lot of them in on it treaty eventually become a really big independent company well. I am so I got excited more about you know need to kind of armored Ian it. So you see other opportunities on the monetize. That information that they have. Totally and I think you know one of the action of the Arctic the man like there's so many interaction merchandise on Kurt. He argued that you'd pick but I think we're gonna start with you are getting here. Interest in Galilee a Russell with seeking alpha thank you very much Spotify would symbol Spotify. SP OT ESP OT spot thank you very much tell him.