CANNES, France -- Index Ventures' Saul Klein threw cold water on the industry's burning love of global services at a Saturday discussion at MIDEM. "Pick your market," he told the audience. "Win big." In other words, stop obsessing with a global presence. Companies may not need to be in every market.
To prove his point, Klein mentioned how Pandora and Netflix have succeeded in just one market - albeit the biggest market in the world. Spotify has not earned a profit - as more than one panelist pointed out on Saturday - but it has generated a ton of excitement without launching in the U.S. There are other examples, too. Deezer is building its story in France while Simfy is based in Germany.
Klein's comments seemed pointed at Comes With Music. Another frequently mentioned service on Saturday, Comes With Music is the most obvious example of a global service that did not need to be global. Nokia has now scaled back the number of territories in which the all-you-can-eat music service operates. The service's early difficulties show that difference consumers in different markets will react differently to the same service.