SeeSaw Needs To Look At Spotify For Inspiration & Ideas

Then there's the revenue generated by advertising which as Ms Brown highlighted, is painfully low compared to broadcast television, although the return on investment is likely to be higher because it can be targeted.

Furthermore, Spotify is partly owned by the labels themselves who invested in the free music on demand service at a very early stage, back in 2008 and purchased 17.6 percent of the company altogether. That's not the case for Seesaw who will not benefit from any concessions from the BBC or Channel4.

Seesaw is owned by Arqiva which purchased what remained of Project Kangaroo when it was unceremoniously dumped by its former owners after it failed to pass the Competitions Commission's test. (ed : Arqiva is also one of the five partners that currently handle Freeview).

All this means that Seesaw will be facing an upward hill in its journey towards profitability, one which will be almost entirely driven by the pay per view model. 

The problem for Seesaw though is that it will burn money faster than Spotify even if Arqiva's size (2300 employees and £800 million worth of revenues per annum) means that it has at least one year to prove its value.