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Spotify is getting “killed” because it was always a bad business to be in when your costs - payments to labels - scale linearly with your revenue. The exact op
by scarface_74 2y ago
Spotify is getting “killed” because it was always a bad business to be in when your costs - payments to labels - scale linearly with your revenue. The exact opposite of a normal tech company that has high fixed costs and very low marginal costs.
> Apple and Google don't even need to turn a profit on their platforms, and both of them are hurting Spotify directly by taking 30% of their subscription payments. Neither of them even directly report revenue from their services.
This is not true. Spotify hasn’t allowed in app purchases of subscriptions in almost a decade.
- jsnell 2y ago> This is not true. Spotify hasn’t allowed in app purchases of subscriptions in almost a decade. That is not true either. Spotify's Android app allows purchasing Premium in-app, with Spotify as a payment provider. I believe it's also the case that Apple Music on Android has in-app purchases, with Apple as the payment provider.
- scarface_74 2y agoThat’s true for Android. And Google only takes a 4% cut when using Google payments and a 0% cut when using Spotify. But Spotify doesn’t pay Google 30% https://www.theverge.com/2023/11/20/23969690/google-spotify-android-billing-commission-secret-deal https://www.theverge.com/2023/11/20/23969690/google-spotify-... So that’s still not a cause for their financial issues.