Spotify’s Grand Tour Lets Rivals Infiltrate Its Valuable Backyard

So-called land grabs are a feature of internet booms. Capitalists become overexcited and dole out money like confetti to entrepreneurs who persuade them that their business is vastly scalable. They do so even when the price of achieving this omnipresence is a long period of heavy loss.

The willingness to bet on metrics unrelated to financial returns is one reason why the unwinding of these manias tends to be so painful. Companies that had been thought to be lossmaking for a purpose turn out to be, well, merely lossmaking. Those that can retrench do so. Those that cannot often go into irreversible decline.

Source: FT.com

Respond to Spotify’s Grand Tour Lets Rivals Infiltrate Its Valuable Backyard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s