Re:Spotify Will End Service in Uruguay Due to Bill Requiring...
by satyrnein on Thursday November 23, 2023 @10:26AM
(#38393727)
Those revenue and cost of revenue figures blend together different things. Their contracts with music distributors (recordings) + statutory rates for music publishers (compositions) = ~70% of the revenue pool from advertisers and subscribers.
However, podcasts work differently, both on the revenue and cost side, and appears to be mixed in. Additionally, Spotify sells optional marketing programs (ads within Spotify, for example) which I assume are included in revenue. So it's hard to draw the right conclusion just from the summary numbers.
As per their latest financial statement ( https://s29.q4cdn.com/175625835/files/doc_financials/2023/q3... ):
> Cost of revenue consists predominantly of royalty and distribution costs related to content streaming.> Cost of revenue also includes the cost of podcast content assets (both produced and licensed)
> Cost of revenue also includes credit card and payment processing fees for subscription revenue, customer service, certain employee compensation and benefits, cloud computing, streaming, facility, and equipment costs.
So all operational costs is included in that "70%", including: infrastructure, payment fees, etc. etc.
A breakdown:
So a total of AT LEAST 723 is not related to paying out royalties. (2472-723)/3357They're paying less than 52%. My estimate would be between 35% and 40%