Spotify is not profitable


The guys at Spotify have a good business mounted, however, it is not as profitable as you think. Spotify is not profitable, or at least not as much as it should be. Obviously, it can’t compete neither with Google or with Apple (for the moment), but it does have a new plan with the who wants to break into the market and that it is possible that we may see very soon.

through the guys from The Next Web, we’ve learned that Spotify is not as profitable as it should be, however, is not on sale. It is clear that fashions change, that’s why they are fads. Now with the summer promotion, you can enjoy Spotify Premium for 9,99 euros for 3 months (until 30 June 2016), but it certainly is good. However, even if it is very cheap, many users are looking for ways free to enjoy music without limits.

spotify no rentable

why Spotify is not profitable?

Spotify is losing more money than ever. This calls the attention taking into account that it is a very popular service among the users, however, is virtually doubling their income, but it is not as profitable as it is supposed to be.

This is a clear guilty party, and is no other than the artists and record labels. We speak of a figures 85 % of expenses. It is a figure very high. And considering that Spotify has about 30 million subscribers to date of march of 2016 (what we see in the previous chart) with about 2,200 million dollars of benefits, we have before us a loss of 192 million.

you may Also have to do with users that don’t pay are enjoying a service “expensive” for which it must pay something and that the publicity is not enough. There are many costs that represent the artists and record companies, and perhaps the way to capture users premium not be the best, or perhaps need to offer more.

Spotify need to differentiate and attract more users

Are the users that do not pay for the key? curious Fact since then, but it could be. Either that or increase the cost of the service premium, that is not fair. Here are the shots of the new model of business that wants to continue to Spotify. This would for example adding content that sets it apart from the competition. Would be nice to have a kind of Periscope on Spotify, but it would be too much to ask, and maybe a little weird, but yes exclusive videos of our favorite artists, interviews, why they have written letters as well, etc What is clear, is that they have to do something to attract more users and others to encourage them to become premium.

What do you think of this topic? What do you think you need Spotify?

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