Celebrities can't fix Spotify's biggest problem

[Bradley Prior]

Celebrities can't fix Spotify's biggest problem

Europe has its first $50 billion internet company: Spotify Technology SA breached the mythical barrier on Thursday. [Bloomberg]

 

[LCBXX]

Radio: What about us?!

 

[TheMightyQuin]

Celebrities can't fix Spotify's biggest problem

Europe has its first $50 billion internet company: Spotify Technology SA breached the mythical barrier on Thursday. [Bloomberg]

Let me quote the RELEVANT section out of that article...

The podcasting strategy of Chief Executive Officer Daniel Ek is shrewd, but alone it is not going to fix Spotify’s biggest problem: paying a giant slice of revenue to the record industry for royalties. That expenditure is why it has a pitiful (for an internet company) gross margin of just 25%.

 

[jbroo]

Mmm such a pity they can't just keep ALL the money and not pay those annoying artists who's music they rely on, right?