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Netflix Putting All Sides Of The Music Business To Shame / Music Business Worldwide

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Netflix is doing a lot of things that Spotify isn't. This year, across licensed content and its own original shows, the company will spend $5bn on programming. It's just launched in 109 countries, including India, where Daniel Ek is yet to tread. It boasts around 75m paying subscribers – three times that of  Spotify. Oh, and it's turning a profit.

There is an overly simplistic conclusion to draw from the graph above: that the Netflix model – one month's free trial then pay, as deployed by Apple Music – is a better driver of subscriptions than Spotify's freemium setup. That may or may not be true, but it dismisses the fact that a ‘rental' and satellite subscription culture was rife in film and TV before Netflix started encouraging customers to move from its DVD borrowing service to streaming in 2010. (Netflix's streaming service technically launched as ‘Starz Play' in 2008- the same year Spotify was born.)

It's also worth bearing in mind that Spotify now has around 100m total users. For Netflix in Q4 2015, that number stood at 77m (which means 6m people were enjoying their free trial). By now, Netflix's paying subs number will already be hovering around 75m.  READ THE FULL Music Business Worldwide ARTICLE