NEW YORK (TheStreet) -- If I had a beer every time I heard somebody make a Netflix (NFLX)-to-Spotify comparison, I'd be more drunk now than I plan on getting at TheStreet's holiday party Thursday night.
Yes, Spotify pays a ton of money for content by doing direct deals with content owners. Same as Netflix. But that's about where the similarities, as far as I know, end. That's fodder for another article.
However, pursuant to why it doesn't matter that Spotify is overvalued, there's only one super-valid Netflix comparison to make.
Technology Crossover Ventures (TCV) bankrolled Spotify's recent round of funding, taking it to a multi-billion dollar valuation. TCV has also been a big NFLX investor. The firm remains a major investor. And TCV is damn good at what it does. Damn good.
TCV is savvy. They have won big with Netflix. They will win big with Spotify. They wouldn't have it any other way.
Spotify can send its Chief Revenue Officer around the country all it wants. It can make mobile listening free in an effort to generate the scale necessary to sell meaningful amounts of advertising and compete with Pandora (P). It can put its very likable and competent CEO Daniel Ek in front of the media to make Spotify's optimistic bull case.
It can do all of these things. And, while I'm not here to say the people on the ground, doing the work at Spotify don't believe in their mission, I am saying that, for better or worse, it amounts to noise between massive financial transactions.