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Let’s not forget that “music solved this” ignores the fact that Spotify is not profitable, and may never be due to the record labels cut. Apple Music, Amazon Mu

Let’s not forget that “music solved this” ignores the fact that Spotify is not profitable, and may never be due to the record labels cut. Apple Music, Amazon Music and YouTube Music may or may not be profitable but are undoubtedly subsidized by their corporate parents. Not sure if Tidal is profitable but they aren’t popular and are much more expensive than people are generally willing to spend. It’s also potentially subsidized by a corporate parent. There’s also a trail of unprofitable or tiny businesses like SoundCloud and Bandcamp that may or may not survive quarter to quarter. It’s not a solved problem.

shzhdbi09gv8ioi 3y ago
> Spotify is not profitable Their stock value doubled in the last year Their CEO Daniel Ek is worth 3.7 billion dollar.
- TheCapeGreek 3y ago
  Both of those numbers are not profit numbers.
  - roenxi 3y ago
    I wouldn't want to be involved in a company that isn't turning a profit. But, in fairness, this is an industry that is adjacent to Hollywood. It is conceivable that they have some sort of weird profit-laundering scheme going to make sure not too much of the money goes back to the artists or something.
    - vineyardmike 3y ago
      Profit and loss can be accounting fiction when needed (eg Amazon), but I think Spotify has the cartel curse. No matter how much money they make, it’s too easy for the labels to see the public finances of Spotify and decide they want to raise the price of licensing. Furthermore, the more people use Spotify, the less profitable the subscription becomes.
Izkata 3y ago
Sounds more like they're riding the line and do sometimes make a profit: > The company posted a third-quarter operating income of 32 million euros ($34.1 million), its first quarterly profit since 2021, helped by a higher gross margin and lower marketing and personnel costs. https://www.reuters.com/business/media-telecom/spotifys-user-growth-beats-expectations-posts-quarterly-profit-2023-10-24/ https://www.reuters.com/business/media-telecom/spotifys-user...

shzhdbi09gv8ioi 3y ago

> Spotify is not profitable Their stock value doubled in the last year Their CEO Daniel Ek is worth 3.7 billion dollar.

TheCapeGreek 3y ago
Both of those numbers are not profit numbers.
- roenxi 3y ago
  I wouldn't want to be involved in a company that isn't turning a profit. But, in fairness, this is an industry that is adjacent to Hollywood. It is conceivable that they have some sort of weird profit-laundering scheme going to make sure not too much of the money goes back to the artists or something.
  - vineyardmike 3y ago
    Profit and loss can be accounting fiction when needed (eg Amazon), but I think Spotify has the cartel curse. No matter how much money they make, it’s too easy for the labels to see the public finances of Spotify and decide they want to raise the price of licensing. Furthermore, the more people use Spotify, the less profitable the subscription becomes.

Izkata 3y ago

Sounds more like they're riding the line and do sometimes make a profit: > The company posted a third-quarter operating income of 32 million euros ($34.1 million), its first quarterly profit since 2021, helped by a higher gross margin and lower marketing and personnel costs. https://www.reuters.com/business/media-telecom/spotifys-user-growth-beats-expectations-posts-quarterly-profit-2023-10-24/ https://www.reuters.com/business/media-telecom/spotifys-user...