Hope your day has been great.
In today’s update:
- Spotify and Dropbox
- Newell Brands
- Pipeline Companies
- Oil Chart
Spotify and Dropbox: Love Us, We’ll Change. (Bloomberg Gadfly)
My thought bubble
I don’t have insights into either business, however, the Bloomberg article noted that both companies were pitching investors that how they would earn money in the future is different than how they are earning money now.
From the article:
All of the Dropbox customers featured in the video are businesses — tiny, medium and large — not the individuals who make up the vast majority of Dropbox’s paying customers. Businesses also were the featured customers in Dropbox’s financial prospectus to potential investors.
This makes sense. What they provide to individuals, storage, is largely undifferentiated from say Gdrive. I use both. Frankly, I like Gdrive better. It’s not to say individuals can’t make a good business, but in order to grow in the future, they have to find another source of revenue.