News for hackers. Stuff that matters.

A comment on Spotify is first music streaming service to surpass 200M paid subscribers. Parent comment

Re:Spotify is first music streaming service to surpass 200M ... by super256 on Tuesday January 31, 2023 @09:53AM (#34595711)
By investors listening to what the two goals are:

- 1b subscribers - after THAT: 10% profit margin

Look, spotify is still growing fast. They aim for 20% MAU growth YoY, and they are actually achieving it: they added 23M new MAU between Q2 and Q3 last year, around 40% of those new users were premium subscribers. New numbers for Q4 will be released today.

They are still trying to capture the whole market. After doing that they will flick the lever to profitability over growth. The current goals are set for 2030. Only if Ek deviates from the growth trajectory too much he will be dropped as CEO.

[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by josefresco on Tuesday January 31, 2023 @10:18AM (#34596129)
> After doing that they will flick the lever to profitability over growth.

I can't tell is this is sarcasm ... it's sarcasm right? There is no "lever to profitability".

[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by blairbeckwith on Tuesday January 31, 2023 @10:36AM (#34596392)
I can’t tell if this is sarcasm … it’s sarcasm right? Based on the entire history of startups, you truly don’t believe that companies can focus on user growth or profitability, and those directions have different levers?
[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by aeyes on Tuesday January 31, 2023 @09:17PM (#34605475)
Why do you call Spotify a startup? It was founded over 15 years ago. Hundreds of thousands of companies have come and gone during this time.

Is it because they aren't profitable just yet? How many more years are you willing to wait?

[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by hamandcheese on Tuesday January 31, 2023 @10:37AM (#34596413)
How could there not be? Fire all the people who were working on growth.
[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by oneoff786 on Tuesday January 31, 2023 @10:39AM (#34596446)
Why not? You don’t think they could eek out an additional 70 cents per month per customer if they wanted to focus on that right now?
[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by ketzo on Tuesday January 31, 2023 @09:48PM (#34605686)
"Hi marketing department! You're losing 50% of staff and 80% of advertising budget!"

bam, growth -> profitability!

[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by moneywoes on Tuesday January 31, 2023 @10:18AM (#34596139)
Is that info in the prospectus?

Very interesting, they’re doing the Uber model essentially

[ Parent | on HN ]
Re:Spotify is first music streaming service to surpass 200M ... by super256 on Wednesday February 01, 2023 @10:06AM (#34611455)
> Is that info in the prospectus?

Ek clearly communicated this during the Q2 2022 call.

[ Parent | on HN ]