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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. (open.substack.com)

submitted 11 months ago by 4realz to c/technology

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[–] Rendh 9 points 11 months ago (2 children)

Because servers and traffic are free. Totally forgot how you don't have to pay the people keeping the service alive either. A steam game you download once? Maybe once a year? Music gets streamed (downloaded) every single time unless you decide to download it. Can we maybe not pretend like Spotify does fucking nothing?

[–] echo64 1 points 11 months ago

servers and traffic are basically free, it's very low cost - their expenses are salaries not servers.

[–] [email protected] -1 points 11 months ago (2 children)

I didn't mention servers because that is their only cost next to employees.

If they aren't paying artists well, well what's the point of having servers.

Maybe can we not pretend like Spotify is some up and coming startup that barely breaks even because of their benevolence?

[–] Rendh 3 points 11 months ago (1 children)

Because apparently these servers cost enough that even with 400mil users they aren't making profit? The point of Spotify is giving paying customers what they want so that hopefully Spotify can make a profit. Unsure why that's so unacceptable for you? And small artists have been paid like shit long before Spotify was an idea. Take that up with the actual music industry. Or maybe accept that turning your hobby (making music) into a job just doesn't pay the bills for everybody that tries. I have no idea how you can blame Spotify for payouts bigger than on YouTube or Twitch when it's the music industry fucking with the numbers.

[–] [email protected] 1 points 11 months ago

Many of their executives make over $300,000 and the CEO is a billionaire. I don't know how you can't blame Spotify for payouts.

[–] ashok36 2 points 11 months ago (1 children)

Servers and employees. Nothing else. Got it. No office space, no advertising, no royalties.

What a genius business plan. No wonder they're so successful.

[–] [email protected] 0 points 11 months ago

Then I'm sure their executives would be happy to take a pay cut to make the business profitable.