this post was submitted on 04 Jun 2024
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Spotify actually doesn't make that much profit, if any.
But the record labels are major shareholders and definitely influence the pricing structure. Spotify is essentially a marketing frontend for the record industry.
I am literally looking at their financial report for 2024 Q1 and it shows a profit.
They’re reporting 1.00 billion in gross profit as of Q1 2024 so yeah, they make money. It’s kind of impossible to compare much though since they’re the only freestanding music competitor that’s popular.
The closest comparison I can make is using Apples reported figures of making around $9.2 billion in revenue for its 93 million user base.
Meanwhile Spotify is making around 2.63 billion in revenue for its near 3x subscriber base estimated around 240 million. So I wouldn’t say they’re not making money, but maybe you can see why they think they can squeeze a lot more. Best to just unsubscribe honestly, they’ll keep doing this
So they’re leaving a lot of money on the table and getting criticized for their greed? I’m not sure how that’s a coherent position.