Re:Spotify loses $59.1 million on $244.5 million in revenue
by ChuckMcM on Saturday October 06, 2012 @02:54PM
(#4621332)
The challenge then is to make money but appear to lose it, this appeases the music labels who think they are taking all the value off the table.
It seems we need a tech company that can do 'hollywood accounting' where they give the labels 40% of the 'net' and sadly there is no net.
At a guess, I think spotify are trying to squeeze themselves into a position where the labels need spotify because otherwise artists just will not have the same reach otherwise, I know I dont listen to a band until they put their stuff on spotify. I have seen labels + bands be more reactive to making sure their stuff hits spotify quickly which seems to show a shift in power, hopefully the trend continues.