“We are in serious jeopardy. We’ve got to invest….we’ve run historically at such great margins, we’ve been reluctant to knock a point or two off of it to invest. I'm still not sure that streaming by itself is a great business.”
I am with Bruce Reese: streaming should be thought of as a promotional expense and we should stop playing low dough (or bonus spot) commercials on our streams, other than maybe sponsoring 20-60 minute blocks of the music we want our portals to be famous for.
If we are going to take on Pandora we need to use our megaphone differently on the web.
Example. Instead of getting a buck. Get 10 and play 10 less commercials. Or hours sponsored by major advertisers (not for value-added, for value!).