Could streaming services like Spotify, Pandora, Last.fm and Grooveshark live entirely on advertising alone?
Seems like a seriously speculative bet, but not to Alexis van de Wyer, president at Adswizz. He thinks that Spotify and its streaming peers have been so focused on audience growth that they haven't really wrapped their heads around sophisticated ad-based monetization. "What this industry has seen is a huge amount of audience growth," van de Wyer told Digital Music News. "But so far we haven't necessarily seen the monetization. Or when there is monetization, the costs are growing faster than the revenues."
Which has led to van de Wyer's theory that ad-based companies like Spotify and Pandora could totally survive on advertising alone - and be profitable - if they successfully dedicated the resources and brainpower to making this happen. "I've seen it, I know that it's possible," van de Wyer told us.
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