this post was submitted on 17 Dec 2023
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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 1 year ago by 4realz to c/business
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[–] [email protected] 4 points 1 year ago

The shareholders are the labels that are getting paid, like Sony. They really can’t lose with Spotify; if Spotify makes more money than they pay in fees the labels win and if Spotify pays out all their revenue to the labels, they are still winning.