Spotify doesn’t make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders.

@4realz@lemmy.world · 1 year ago

Spotify doesn’t make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders.

@NaoPb@eviltoast.org · 1 year ago

Yeah it’s all the fault of the rightsholders. Definitely not bad management.

Not that I’m a fan of rightsholders but this is more like shifting the blame.

@where_am_i@sh.itjust.works · 1 year ago

400m subs x 100$ a year on avg = 40 billions in revenue. Even if only 25% e.g. 10 bil is retained by Spotify it’s a lot of money to maintain infra and pay stuff.

Spotify doesn’t make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders.

Spotify doesn’t make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders.

Why Spotify Struggles to Make Money from Music Streaming