Did they manage just fine? They had to cut the same extortionate deal with the big 4 records labels and give them an equity steak in the company as well[1]. Given the recent figures I think the jury is still out on whether Spotify and this whole "the more we make the more they take" business model is actually sustainable:

"In 2016, Spotify lost just over $600 million ($601.4 million), up significantly from 2015's losses of just under $258 million. This means losses increased by 133%."[2]

[1] http://www.swedishwire.com/jobs/680-record-labels-part-owner...

[2] https://www.forbes.com/sites/hughmcintyre/2017/06/15/spotify...

"...give them an equity steak..."

I think I love that phrase.

LOL. It sounds very Marie Antoinette. I'm glad you pointed this out :)

Who said you need billions to get started, you need a billion to keep going, when the music industry notice you. Spotify have raised $1.56bn to date: https://www.crunchbase.com/organization/spotify

Which included $1bn in debt just last year: https://techcrunch.com/2016/03/29/stream-with-the-devil/

They wouldn't have raised that, if they were "just fine".