Comment on Spotify re-invented the radio

• small44@lemmy.world ⁨1⁩ ⁨year⁩ ago

  I undersand the difference but how are they going to be profitable if they are not increasing the revenues

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  • theycallmedocworm@lemmy.world ⁨1⁩ ⁨year⁩ ago

    I think what he means is that even though they’re offsetting the costs, they still aren’t profiting. Let’s say it costs Spotify $30 per free user per month, some of whom become premium subscribers for $10 per user per month. That means for premium users, it still costs $20 per user per month. The free users are still costing $30/month though, so they show ads to reduce that cost to $25/month, which is less of a money sink, but still not outfit

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