> Consumer confidence is down three straight quarters in a row. Nobody feels good about what the music is going to do next.
Sure, but you can leave a downturn four ways:
1. You went out of business
2. You experienced a decline and let a lot of people go
3. You managed to stay roughly where you were, no further forward, no further backwards (this is a small success but still a great achievement) and you may have let some people go — the expression "running to stand still" applies here
4. You find a way to come out better than you went in and maybe continued to hire
Spotify feel like they've gone from #3 to #2, but they had ambitions to be #4 of those scenarios, they will likely survive, but in what form and with what potential? And more to the point, if their competitors manage to achieve #3 or #4, at what long-term cost to Spotify?
5. Cut your losses and keep whatever cash stores you can for the storm to come.
We have zero insight into what the Spotify execs are seeing. Maybe ad revenue is already down. Maybe subscriptions aren’t renewing. Maybe costs are increasing.
Sometimes, the best thing to do is cut some employees now, so you don’t have to cut more later.
Sure, but you can leave a downturn four ways:
1. You went out of business
2. You experienced a decline and let a lot of people go
3. You managed to stay roughly where you were, no further forward, no further backwards (this is a small success but still a great achievement) and you may have let some people go — the expression "running to stand still" applies here
4. You find a way to come out better than you went in and maybe continued to hire
Spotify feel like they've gone from #3 to #2, but they had ambitions to be #4 of those scenarios, they will likely survive, but in what form and with what potential? And more to the point, if their competitors manage to achieve #3 or #4, at what long-term cost to Spotify?