Comment on 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.

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abhibeckert@lemmy.world ⁨1⁩ ⁨year⁩ ago

IMO shareholders should be livid

Why? Shareholders gave Spotify billions of dollars - they expect the company to spend that money. Shareholders are quite capable of depositing their own money in a bank if they didn’t want it to be spent.

My take is Spotify hired over 5,000 employees over 2020 and 2021 when the economy looked great. Then Russia Invaded Ukraine in 2022 screwing the global economy and particularly Europe which is Spotify’s biggest market. They’ve laid off about half the people they hired, which is unfortunate… but it’s understandable. The couldn’t have foreseen what happened.

Spotify removed the need for mp3’s for the majority of people, largely killing iTunes

Huh? Apple’s music service has about a hundred million users. Spotify has more than twice that, but iTunes is hardly dead.

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