4 ms·

Well, Spotify managed just fine. They didn't have those billions when they started out in Sweden.

• bogomipz 9y ago
  Did they manage just fine? They had to cut the same extortionate deal with the big 4 records labels and give them an equity steak in the company as well[1]. Given the recent figures I think the jury is still out on whether Spotify and this whole "the more we make the more they take" business model is actually sustainable: "In 2016, Spotify lost just over $600 million ($601.4 million), up significantly from 2015's losses of just under $258 million. This means losses increased by 133%."[2] [1] http://www.swedishwire.com/jobs/680-record-labels-part-owner-of-spotify http://www.swedishwire.com/jobs/680-record-labels-part-owner... [2] https://www.forbes.com/sites/hughmcintyre/2017/06/15/spotify-lost-more-than-600-million-from-3-3-billion-in-revenue-in-2016/#38fc54617008 https://www.forbes.com/sites/hughmcintyre/2017/06/15/spotify...
  • mcguire 9y ago
    "...give them an equity steak..." I think I love that phrase.
    • bogomipz 9y ago
      LOL. It sounds very Marie Antoinette. I'm glad you pointed this out :)
• rythie 9y ago
  Who said you need billions to get started, you need a billion to keep going, when the music industry notice you. Spotify have raised $1.56bn to date: https://www.crunchbase.com/organization/spotify https://www.crunchbase.com/organization/spotify Which included $1bn in debt just last year: https://techcrunch.com/2016/03/29/stream-with-the-devil/ https://techcrunch.com/2016/03/29/stream-with-the-devil/ They wouldn't have raised that, if they were "just fine".
• deleted 9y ago
  [deleted]