Mapu

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On December 12, 2015, Mapu commented on Spotify and the Digitization of Music :

Thank you for your post! I am a user but have never reflected on how the business model creates value to both sides of the chain by reducing piracy.

I read on the news that Spotify was moving to a more “paid only” model. Eg: we could not be able to listen to every artist or new release for free.
And we also know about some popular artists like Taylor Swift who ban Spotify from streaming her music, as well as notoriously more talented Adele prohibiting them from streaming the whole new album 25. Why do you think some artists are moving in this direction even though, as you described, there is value being created for them?

If these changes continue, how do you think they could impact consumers and the business model in the future?

This is a really interesting business model I’ve never heard about! It is smart the way they are so flexible and asset light.

I was wondering how they do pricing? Is it a fixed fee or a commission?

It reminds me of our case about OTAs. Do you think carrier companies see Coyote as an ally or rather as an agent they have to put up with to get volume but who pushes competitive prices down? I imagine for the smaller carriers who don’t have customer relationships they are seen as very valuable but larger carriers would rather develop their own technology or even acquire them (as it happened!). Along that line, do you think a company with this business model could ever survive long term stand-alone?

Great Post!

I was really surprised to hear about them training the employees back in Japan. It reminded me of Benihana and how they used original decorations! Do you think the international consumers value this differentiated customer service or there are opportunities to reduce cost?

I was also wondering if you had more information on their design process. From what I’ve noticed they seem to be moving away from only having basic “gap like” designs into more fashionable upscale pieces (but using the same technology of fibers). This might translate into more expensive inventory, how do you think this could affect their operating model?