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And premium users pay for everyone's streams. That's one of the conflicts, and the other is that those who listen to fewer plays get less influence than those w
by kzrdude 6y ago
And premium users pay for everyone's streams. That's one of the conflicts, and the other is that those who listen to fewer plays get less influence than those who listen to many. So even if all the premium users prefer jazz (for example), their money will mostly go to whatever the free users prefer listening to.
If spotify itself was seen as a market - I wouldn't say that this would be a very well-functioning market, because of the mismatch between what you use and who you pay.
- WJW 6y agoDon't non-premium users get ads interspersed into their playlists to make up the difference?
- kzrdude 6y agoIt doesnt make up for the difference
- kjaftaedi 6y agoYour comment implies the ad-supported users are responsible for revenue loss. In my mind, decisions like giving Joe Rogan 100 million dollars are more likely culprits.
- kzrdude 6y agoPaying users provide 90% of the income. That pretty much says that if it wasn't for them, Spotify would not be here today. Edit: That's the first I hear of that deal, and that's insane. Not a podcast I listen to, and I don't want to use any of the user-tracking, user-inlocking podcast players.
- dmurray 6y agoWhy not? Ads are enough to pay the licensing costs for radio stations, which have higher distribution costs and worse economies of scale than Spotify.
- kzrdude 6y agoFigures say they don't make up for the difference, subscription fees are 90% of the income > Spotify’s Premium subscriptions, which still account for the majority (~90%) of its revenues, grew by 17% to reach €1.76 billion in the quarter https://techcrunch.com/2020/07/29/spotify-users-are-streaming-again-but-ad-revenues-still-suffer-due-to-covid-crisis/ https://techcrunch.com/2020/07/29/spotify-users-are-streamin...