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This is good analysis. Small quibble with the last part - we don't know how much the price charged to consumers needs to increase to be able to afford $0.01 a s

This is good analysis. Small quibble with the last part - we don't know how much the price charged to consumers needs to increase to be able to afford $0.01 a stream. Any increase in price will see a drop in subscribers, dropping revenue. An increase in price could reduce revenue, making it harder to afford the increased payout.

rsstack 6y ago
Since the cost is linear to number of streams, it only matters if the premium subscribers that drop have a lower average streams/month rate than the average premium subscribers. This assumes, like the post two levels above me, that Spotify don't need the profits for anything and just need to break even.
FalconSensei 6y ago
On the other hand, when you think about take-home pay for the artists, more people listening, even if paying less for individual streams, can mean more money. Isn't one of the strengths of the internet the fact that it's easier to scale and reach a wider audience, thus having more money in the end?