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Agreed and this news comes just 6 months after Spotify hiked their subscription price. Which at the time was well received by the stock market. How profitable

• Mindwipe 3y ago
  > How profitable would Spotify be if they were paying full price? They're not profitable now so very not.
  • notyourwork 3y ago
    Last quarter they posted 1.94% profit margin.
    • FirmwareBurner 3y ago
      Question: how does Spotify pay so well when they have profit margins lower than a restaurant?
      • twosdai 3y ago
        Scale. A restaurant can only serve 100's or maybe 1000's of guests in a single day. Spotify has Millions of subscriptions. 2% at scale is significant. Here is their recent Q3 earnings report: https://newsroom.spotify.com/2023-10-24/spotify-reports-third-quarter-2023-earnings/ https://newsroom.spotify.com/2023-10-24/spotify-reports-thir... Their revenue was 3.4 Billion Euros at 2% they can take away 68 Million dollars. Which is more than enough for the business to be viable.
      • callalex 3y ago
        For the same reason you buy nicer toilet paper for your home than the stuff you find at a truck stop: it’s not a significant portion of their expenses.
• carstenhag 3y ago
  Netflix went a different route. After being offered to only pay a 10% cut, they made calculations and decided to not offer in-app-subscriptions at all. This article has details: https://www.theverge.com/23954852/google-netflix-app-store-deal-play-10-percent-revshare https://www.theverge.com/23954852/google-netflix-app-store-d...