Spotify's moat is the byzantine legal maze of negotiating music rights with the record labels which needs to happen in a by-country basis. Their profit cap is

Spotify's moat is the byzantine legal maze of negotiating music rights with the record labels which needs to happen in a by-country basis. Their profit cap is mostly the result of actual competition. That's a healthy market, which is fundamentally a good thing for the consumers since it means they need to innovate and provide a good service.