A major question looms over Spotify and its streaming music competition: can anyone grow into profitable businesses? For Spotify, the answer is not yet. In 2012, Spotify's revenue doubled, but it also failed to turn a profit as its losses grew due to increased licensing fees, The Wall Street Journal said in a report. The problem here is that all Spotify does is stream music. And in order to do that, it has to pay record labels and musicians licensing fees so it'll have something to stream. For now, the fees are growing along with everything else and profit remains out of reach.
In 2011, when the music service made its US debut after years of popularity in Europe, Spotify brought in about $252 million in revenue, according to the Journal....
via The Verge - All Posts http://www.theverge.com/2013/7/31/4575506/spotify-doubled-revenue-in-2012-but-losses-grow
No comments:
Post a Comment