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How is a company that is not profitable and will never make more than a 30% gross margin on a customer in a more stable position? They are also suffering from
by scarface74 4y ago
How is a company that is not profitable and will never make more than a 30% gross margin on a customer in a more stable position?
They are also suffering from the “DropBox problem”. Streaming music is not a product. It’s a feature. Their largest competitors don’t have to make money on streaming music. Streaming music for Apple and Amazon are just features to sell hardware.
- dopeboy 4y agoIs this were the case, why is Amazon's and Apple's pricing the same as Spotify's?
- scarface74 4y agoSpotify isn’t profitable. Apple and Amazon don’t need for their streaming products to be profitable as stand a line services. Just like Microsoft doesn’t need for OneDrive to be profitable by itself - hence the “Dropbox problem”. https://www.inc.com/will-yakowicz/why-dropbox-founders-said-no-steve-jobs.html https://www.inc.com/will-yakowicz/why-dropbox-founders-said-... Do you think AppleTV+ is profitable as $7.99 stand alone service?