Why Spotify Struggles to Make Money From Music Streaming
OlaOluwa Adeyemo
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:
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Posted Dec 17, 2024
Despite being the world’s largest music streaming platform, Spotify has struggled financially
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