Comment on Spotify re-invented the radio
small44@lemmy.world 11 months agoI undersand the difference but how are they going to be profitable if they are not increasing the revenues
Comment on Spotify re-invented the radio
small44@lemmy.world 11 months agoI undersand the difference but how are they going to be profitable if they are not increasing the revenues
theycallmedocworm@lemmy.world 11 months 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