How is this such “great news”? Spotify is having a Dropbox issue - in the grand scheme of things, their only reason for existing is just a tiny line item to their major competitors - Apple, Google, and Amazon. They are a feature not a product.
bit bullied. Despite steadily increasing paid subscribers (75 million and counting) and revenue (about $1.36 billion last quarter), Spotify continues to bleed. The $49 million or so that it lost in the first three months of 2018 wasn’t because the company can’t keep a tight rein on its own spending, but because it can’t keep a rein on its suppliers. Yes, that’s right: As Spotify grows, so do its royalty payouts to record labels and other music providers. And those marginal costs are an anchor on the Stockholm company’s profit potential
Revenue means nothing without profit.
http://fortune.com/2018/05/30/spotify-ipo-profit/
bit bullied. Despite steadily increasing paid subscribers (75 million and counting) and revenue (about $1.36 billion last quarter), Spotify continues to bleed. The $49 million or so that it lost in the first three months of 2018 wasn’t because the company can’t keep a tight rein on its own spending, but because it can’t keep a rein on its suppliers. Yes, that’s right: As Spotify grows, so do its royalty payouts to record labels and other music providers. And those marginal costs are an anchor on the Stockholm company’s profit potential