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Compared to Netflix, Spotify has several advantages with content creators that could make its path to participating in content economics even easier...
SPOT data capture is much broader & higher quality than NFLX, thus more valuable to creator & their management.
SPOT already has internal advertising inventory, thus has a cost of capital advantage for promotion vs labels. NFLX has to pay the same $ amounts via the same channels as DIS or HBO to promote.
SPOT can offer artists non exclusive licensing deals, keeping their reach as broad as possible AND upping their cut of revenue vs the status quo.
NFLX getting exclusive content was simply having better access to capital vs movie studios. SPOT sharing in content economics will be driven by structural advantages it has over record labels.
And since music content has a longer lifespan & broader use cases (ie in car, while cooking, while working out) than video, SPOT's transition from distributor only to vertical integration should be even more valuable for shareholder's than NFLX's transition.
