10'000 songs × 1.29 $/song = 12'900$ to spend on music as a one-time up-front purchase. That's certainly an interesting proposition.
If you stick that in an ETF for 30 years, you expect to get investment×(returns-inflation)^years = 12.9k×(6%-2%.)^30 = 12.9k×(1.04)^30 = 41.8k. (Does someone have a formula for a 90% confidence interval at, say, 30 years?)
It doesn't quite pay for the streaming service but it goes a long way. If you decide to buy music and rent or buy a server instead, there's additional costs to factor in
Edit: wait I don't think I factored in the inflation correctly. It should not be a factor in ETF returns, only in the cost of commercial streaming services right? So the amount should be higher, making commercial streaming services comparatively more attractive? Might need to factor in 30% income tax or something though. Hmm... meh, I'm going to call it close enough (typing this out on mobile is a bit of a pain)
If you stick that in an ETF for 30 years, you expect to get investment×(returns-inflation)^years = 12.9k×(6%-2%.)^30 = 12.9k×(1.04)^30 = 41.8k. (Does someone have a formula for a 90% confidence interval at, say, 30 years?)
It doesn't quite pay for the streaming service but it goes a long way. If you decide to buy music and rent or buy a server instead, there's additional costs to factor in
Edit: wait I don't think I factored in the inflation correctly. It should not be a factor in ETF returns, only in the cost of commercial streaming services right? So the amount should be higher, making commercial streaming services comparatively more attractive? Might need to factor in 30% income tax or something though. Hmm... meh, I'm going to call it close enough (typing this out on mobile is a bit of a pain)