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That VC money is given to Spotify on the expectation that eventually Spotify will stop operating at a loss. Otherwise there is no reason to give them money at a
by aroman 10y ago
That VC money is given to Spotify on the expectation that eventually Spotify will stop operating at a loss. Otherwise there is no reason to give them money at all.
If and when that expectation no longer holds, the money will stop.
- bogomipz 10y agoSure, I understand that but its but its still able to operate at a loss for 10 years now.
- x0x0 10y agoBut what, exactly, does Spotify bring to the table that justifies more than a couple of percent operating fee? They don't own the content; they're just middlemen. The labels / rights holders can continually raise their prices to just below (or perhaps above, if VCs want to subsidize forever) Spotify's income. Spotify's app works at best ok (I'm on android). But even a good app plus recommendations probably gets you amazon-sized margins.
- nicky0 10y agoWell I guess nobody would mind if Spotify goes bust then.