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> Spotify has never posted an annual net profit. Because a company choose to roll all of its revenue into growth does not mean that somehow that money doesn't
by munificent 6y ago
> Spotify has never posted an annual net profit.
Because a company choose to roll all of its revenue into growth does not mean that somehow that money doesn't exist and couldn't have instead gone into musicians' pockets.
Spotify made $7.4 billion in 2019. Imagine a world where Spotify had only made, say $1 billion, and all of the world's streaming musicians had made $6.4 billion more, distributed among them. Call me crazy, but that latter world sounds more like the one I'd prefer to live in.
- Negitivefrags 6y agoWhat do you think they spent that 7.4 billion on exactly? They literally did give it to the artists, or at least, the record companies.
- 542458 6y agoI’m confused as to what your second paragraph is trying to say. Spotify made 6.7B In revenue last year - not profit. Of that about 5B is paid out to the world’s musicians and record labels (technically bandwidth is probably in that number too, but it’s likely not a huge factor). The remaining 1.7B is marketing, R&D, and admin. In other words, Spotify’s 1.7B cut is about 25%. For comparison, in 1995 if you bought a CD the record store would take a ~35% cut. https://www.nytimes.com/1995/07/05/arts/pennies-that-add-up-to-16.98-why-cd-s-cost-so-much.html https://www.nytimes.com/1995/07/05/arts/pennies-that-add-up-...