4 new charts - entertainment streaming industry 101

Some basics of Spotify, Netflix and Disney

Everyone is sharing their Spotify wrapped. So let’s take a look into some basics for the entertainment streaming industry.

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Chart #1 - Spotify tops the market in music streaming, a very big vertical inside entertainment streaming. I’ve never used Apple Music or even heard of Amazon Music. Who uses them? Worth noting China’s market is dominated by Tencent and Netease.

Chart #2 - Spotify almost had a perfect straight-line growth in recent years. Being the biggest and still adding the largest number of new subscribers, is a beautiful thing to watch.

Chart #3 - Despite claiming the leader position, Spotify’s financials don’t look like a tech company 🧐 - gross margin of 25% is actually very low. The norm is to have at least a 40% gross margin as a tech company.

Chart #4 - Another big vertical inside entertainment streaming is movies and plays. Netflix is no longer the biggest here if we add up all Disney family services such as Hulu and ESPN+. Disney+ is still growing vertically. Netflix not so.

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See you next Wednesday with more new charts on IPOs, M&As, and unicorns!

Truman

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