Sachs

Spotify Is Now The Second Biggest Source Of Revenue For Labels

Source: http://www.businessinsider.com/spotify-revenue-labels-2012-6

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Spotify is now the No. 2 revenue source for the major music labels, a source close to the company tells us.

Spotify is an on-demand music service. There are free and subscription options. 23 million people used the service last month, according to AppData.

The No. 1 revenue source for labels is Apple’s iTunes.

iTunes paid approximately $3.2 billion to record labels in 2011, Business Insider Intelligence estimates.

The gap between Apple and Spotify remains extremely large, our source tells us.

“iTunes is way up here,” our source said, gesturing up high, “and everyone else is way down here.”

At this year’s SXSW conference in Austin, early Spotify investor Sean Parker said: “If we [Spotify] continue growing at our current rate in terms of subscriptions and downloads, we’ll overtake iTunes in terms of contributions to the recorded music business in under two years.”

Spotify, founded in Sweden in 2006, is currently raising $220 million at a $4 billion valuation. Goldman Sachs is investing $100 million in the round, Evelyn Rusli reported in the New York Times.

Spotify raised more than $100 million at a $1 billion valuation in 2011. 

We first heard about Spotify’s latest raise at a massive valuation back in March. Then, investors told us they were very skeptical of the company’s prospects. The reason: Spotify does not own the content it sells to consumers. The labels do. In this view, the music labels will be able to keep a close eye on Spotify’s margins and tax the startup’s (as-of-yet unrealized) profits heavily.

The more optimistic view is that the labels will support Spotify as an alternative to iTunes, which the labels view as too powerful. In this outcome, Spotify will become a revenue source the label come to depend on and it will be able to dictate terms.

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Monday, June 25th, 2012 news No Comments

Apple’s Mind-Blowing Margins In Context (MSFT, AAPL, GOOG)

Source: http://www.businessinsider.com/chart-of-the-day-google-microsoft-apple-operating-margins-2012-4

The most important thing to come out of Apple’s earnings was the fact that its operating margins were so strong, said Goldman Sachs analyst Bill Shope.

As you can see in this chart from the always insightful Horace Dediu of Asymco, Apple’s margins are better than Microsoft, which is a software company, and Google, which is an Internet company.

Apple is a hardware company. The fact that its margins beat software companies and internet companies is mind blowing. 

(The chart below shows margins from 2 quarters ago.)

Want more mind-blowing information on Apple? Then take a look at this >

chart of the day, google, apple, microsoft operating margins

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Wednesday, April 25th, 2012 news No Comments

The Capital Network That Runs The World

Source: http://www.businessinsider.com/capitalist-network-runs-the-world-2011-10


There really is a secret capital network that runs the world, according to an analysis published in the esteemed New Scientist (via Patrick.net).

The work revealed a core of 1318 companies with interlocking ownerships. Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60 per cent of global revenues.

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

While the existence of a core capitalist network isn’t surprising, this is the first time it has been mapped and quantified.

Here are the 1318 companies that control (60 percent of) world assets, with the really powerful companies in red.

image

And here’s the top fifty:

1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

* Lehman still existed in the 2007 dataset used

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Friday, October 21st, 2011 news No Comments

On Facebook, A Wal-Mart Employee Is More Valuable Than A Goldman Sachs Employee

Source: http://www.businessinsider.com/chart-of-the-day-facebook-ads-2010-6

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In the real world, using salary as a measure, a Goldman Sachs staffer is worth much more than a Wal-Mart employee. An average Goldman Sachs employee is paid a bonus of $500,000, while the average Wal-Mart employee salary is $20,000.

On Facebook, the opposite is true. In the eyes of an advertiser, a Wal-Mart employee is worth nearly twice as much as a Goldman employee, according to Facebook’s suggested advertising bid prices.

Kim-Mai Cutler at VentureBeat looked at Facebook’s suggested advertiser bid price on per category basis. What she found is pretty interesting. 

As you can see in this chart, the most expensive company to target is Facebook. The next most expensive is Wal-Mart. Goldman and Bain employees are duking it out for the cheapest.

chart of the day, suggested bids to reach facebook users employees of companies, june 2010

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Monday, July 5th, 2010 news 1 Comment

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