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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@lemmy.world to c/technology@lemmy.world

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[-] wolfshadowheart@slrpnk.net -1 points 1 year ago

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@lemmy.world 3 points 1 year ago

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.

[-] wolfshadowheart@slrpnk.net 1 points 1 year 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@lemmy.world 2 points 1 year ago

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.

[-] wolfshadowheart@slrpnk.net 0 points 1 year ago

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

this post was submitted on 17 Dec 2023

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