Why Spotify Struggles to Make Money From Music Streaming

In this article, I discussed why Spotify, despite being the world’s largest music streaming platform, struggles to make profits.

For every $1 Spotify earns, it has to pay $0.70 in royalties to record labels and other rights holders of the songs it streams, leaving just 30% to meet all its operational costs, including salaries and marketing.

I further explained how Spotify spent over $1 billion to diversify into podcast streaming, which has proven profitable, helping the company achieve record-breaking quarterly profits in 2024.

You can read the full article here: