Spotify launched in the US 10 years ago this month. Here's my best take at how economics flow from a $9.99 monthly subscription.

Three takeaways:
1) Spotify only keeps ~33%,
2) Artists and songwriters don't get much,
3) Music is really, really complicated.
This chart is probably out-of-date and imperfect (and I am in no way the expert!) but the takeaway remains the same: music is the legacy media industry in which gatekeepers—record labels—still have the most power, and that shows in economics to artists.
Spotify isn't thought of for user-generated content, but the most-popular playlists are UGC. This is the modern version of sending your crush a mixed-tape

Personalized & curated playlists are an underrated lock-in: e.g., I won't churn bc I don't want to lose my Discovery Weekly

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More from @rex_woodbury

12 Jul
This is Max Martin.

He has the 3rd-most Billboard No. 1 hits of any songwriter in history with 24, behind only Paul McCartney (32) & John Lennon (26).

He's arguably shaped culture more than any other person over the past 25 years, yet almost no one has heard of him.

Thread 👇 Image
Let's back up. Until the 70s, Sweden wasn't exactly known for pop music.

Then ABBA came along. ABBA redefined Sweden's sound & laid the groundwork for a new generation.

One young Swede inspired by ABBA was Max Martin, born just as ABBA was achieving global success. Image
After a short stint as a musician, Max Martin turned to producing music.

In the 90s, an unknown boy band called Backstreet Boys was sent to Sweden to work with Max Martin. Martin wrote 7 of the 12 songs on their debut album, including their hit single "I Want It That Way". Image
Read 11 tweets
22 Jun
How education is changing:

Traditionally, education took place in the first ~20 years of life. This was fine in an industrial-centric world. But in a tech-centric world, that model no longer works.

Education will be lifelong & workers will reinvent their skills again & again 👇
1) While tech has reinvented sector after sector, education has been largely untouched.

Costs have gone up: the cost of education is growing 8x faster than real wages & Americans hold $1.5 trillion in student debt.

Plus, COVID showed us how ripe education is for reinvention.
2) Most education spending is spent in a learner's first 17 years.

But the skills demanded by the labor market are evolving faster than ever: tech accelerates the pace of change.

85% of today’s college students will have jobs in 11 years that don’t currently exist (!).
Read 6 tweets
22 Jun
A countertrend to the unbundling of Microsoft Office and Google Workspace is the *rebundling* of work.

The proliferation of productivity & collaboration tools is actually making work more complicated. This creates an opening for tools built for organization & focus.

👇👇👇
1) An Okta report found that the average customer in 2018 had 80 installed work apps, an increase from ~50 apps in 2015.

Of Okta’s Office 365 customers, 76% had one or more apps that are duplicative of a Microsoft app.

There's been a steady creep up in # of work apps.
2) COVID accelerated this trend: weekly downloads of business apps increased from 40M in February to 80M through March, April, and May.
Read 4 tweets
16 Jun
Tinder understands human behavior, and it builds its product to capitalize on consumer psychology 🔥📱

Below are 5 examples from the @GrowthDotDesign case study:

1) Progressive Disclosure
2) Curiosity Gap
3) Social Proof
4) Price Anchoring
5) Minimized Task Perception
1) Progressive Disclosure

Tinder starts simple & adds complexity as users get more familiar with the product.

After swiping for a while, for example, you unlock features like Rewind or Swipe Like.

This keeps the product simple for new users while serving needs of power users.
2) Curiosity Gap

Tinder shows you blurred photos of people who liked you. You have to upgrade to Tinder Gold to learn who those people are.

This feature—blurred photos—plays on natural human curiosity that compels people to pay for premium features.
Read 7 tweets
16 Jun
The "unbundling" of Microsoft Office and Google Workspace has been one of the most important tech trends of the past decade.

Elegant, best-in-class products have won with product-led, bottom-up go-to-market motions.

Thread below 👇
1/ In 1990, Microsoft reinvented work productivity tools with its Office suite.

In the 30 years since, Office has grown to 1.2 billion workers. Once-groundbreaking products like Microsoft Word, Microsoft Excel, and Microsoft PowerPoint have become synonymous with knowledge work.
2/ In 2006, Google launched G Suite (now called Google Workspace).

Google Docs, Sheets, etc. reinvented work again by introducing real-time cloud collaboration.

How Google squandered its lead in productivity / collaboration tools I will never understand 🤦‍♂️
Read 7 tweets
4 Jun
1/ McDonald's new marketing strategy is fascinating.

"Accelerating the Arches" focuses on acquiring customers by "investing in new, culturally relevant approaches."

The first collab was with Travis Scott, which helped boost sales by 4.6%.
2/ Travis Scott was the first celebrity to get his own McDonald's meal since Michael Jordan got the McJordan in 1992.

The $6 "Travis Scott Meal" was so popular that McDonald's ran low on some ingredients.
3/ Travis Scott earned about $20M from the deal.

$5M came from regular endorsements.

$15M came from merchandise, including the absurd yet incredible chicken nugget body pillow.
Read 5 tweets

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