Daniel Ek: evaluation

Transcript context

…And aggregate a fragmented market. Yeah, you can do the aggregation theory. That's all good and great. What we don't really contemplate all that much is obviously there are other challenges for that business model. Moderation all of a sudden becomes a massive thing. You have to build an actual ad network that probably then scales. In theory, yes, you're right. You may have an opportunity to gain more margin over time in this model. But fundamentally, you have to do many more steps along the way. We don't have to contemplate content moderation as much when it comes to music. We certainly don't have to have these very elaborate systematic processes about what constitutes speech and violence. We knew that because I'd seen enough of these, obviously, platforms. But it is important because if you think about it from a P&L, on the surface of this, these models are great because of very high gross margins, and so on and so forth. Great at scale, expensive at small scale.…

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