Spotify has tons of music, they added podcasts, but they lose money every year

[insidehoops]

Fascinating to watch the evolution of digital media, especially the likes of streaming platforms for music, movies, TV, etc. And how many of them lose money, like, every year.

At some point, every business needs to eventually make a net profit, right?

Per RollingStone.com: "On November 2nd, Spotify announced “Discovery Mode,” a tool that enables labels and artists to gain influence over algorithmic recommendations in exchange for agreeing to a lower royalty rate. The news kicked up fierce debate over whether “Discovery Mode” actually constitutes a form of streaming payola. But “Discovery Mode” also denotes an important new era for the loss-making Spotify, suggesting that the company is under pressure — and willing — to deploy swift margin-improving tricks to convince Wall Street that it’s serious about finding a path profitability. The consequence of failing to convince Wall Street of this seriousness goes beyond mere share price: History tells us Daniel Ek’s CEO standing could become a target should his company stumble in its quest."

[highwhey]

are they doing the blueprint tech company "lose money until you gain the majority of market share then price gouge the fvck out of the service" routine?

like uber...they've lost a shitload of money. their end goal is close in on the market and once they have a stronghold on it, they will increase prices up the ass.

[bladefd]

Spotify won't last long. Not on its own.

Someone like Amazon or Google or Disney with deep pockets will have to buy out Spotify then they can absorb the losses & market it in a package deal to ultimately profit from it. Amazon is in legal hot waters over monopoly issues so they probably won't risk it. Google is in similar waters. Disney doesn't compete in that sector so they might be able to pull it off. I don't know if Disney wants to go there, but they could package Disney+, espn+ and Spotify in a package deal. They will get millions of more subscribers for that package deal and pretty much profit over spotify.

[Axe]

Best hope they wouldn't be like blockbuster which ended up in bankruptcy.

[MrFonzworth]

That's what happens when you pay someone who lies about their height a hundred mil. Rogan is 5'5 and don't let him tell you he's an inch taller.

[Kblaze8855]

At some point, every business needs to eventually make a net profit, right?


Not for the people running it to reach their goals. The founder has like 4 billion worth of Spotify stock. Profit matters but....not that much to the people at the top. They can at least partially cash out whenever. If I were in such a position I wouldnt care what anyone said about my numbers. The company can make less profit than a hot dog stand and still be valuable.

[tpols]

Not for the people running it to reach their goals. The founder has like 4 billion worth of Spotify stock. Profit matters but....not that much to the people at the top. They can at least partially cash out whenever. If I were in such a position I wouldnt care what anyone said about my numbers. The company can make less profit than a hot dog stand and still be valuable.

Systems like that lead to a collapse... and the top guys just abscond with all the money while everybody else gets screwed. Shit like that is what collapsed our economy in 2008.

[FultzNationRISE]

Systems like that lead to a collapse... and the top guys just abscond with all the money while everybody else gets screwed. Shit like that is what collapsed our economy in 2008.


Absolutely, and that is the whole problem with publicly held companies. Theyre rooted in perception, not reality. Meanwhile ordinary people, either teachers with pensions, chumps like bladefd trying to be a “market rennaissance man” etc putting their money into stock because it’s what theyre told to do, and it just feeds the people in the top. The money the ordinary person makes over time is modest in comparison and often illusionary given inflation. The stock market works so well for the wealthy because the AVERAGE person invested in it doesnt understand jack shit about anything, and doesnt really care anyway because what other options do most people have? Lead some kind of massive revolution? Not on the menu for the simple jack. The whole country just throws their money into stock because it’s all they know. The public does NOT figure things out on its own. The media has to tell them EVERYTHING. And obviously the media aint telling em this.

That was kinda the whole point of Blades of Freedom, ya know?

But nope! You knew better...

[FultzNationRISE]

Thats why it always cracks me up when companies like SNAPCHAT go public? TWITTER???

These companies have extremely tenuous business models and shit revenue. But theyre well known and popular, so people will buy the stock. Banks and big time investors will know how to play the game, the CEO is getting paid well, and meanwhile a bunch of dweebs with a new paycheck deposit are buying some shares of Twitter when it goes public just to feel the excitement of how it might make them rich in a few years!

The whole thing is cartoonish, but again... It’s always gonna be the case that some people set the pace, while the rest just desperately try to keep up.

Wolves leading the sheep.

[FultzNationRISE]

That said, Im over it now. I love Big Brother. Im just discussing it because I opened up the OTC while sittin on the toilet, and old habits die hard.

[tpols]

Absolutely, and that is the whole problem with publicly held companies. Theyre rooted in perception, not reality. Meanwhile ordinary people, either teachers with pensions, chumps like bladefd trying to be a “market rennaissance man” etc putting their money into stock because it’s what theyre told to do, and it just feeds the people in the top. The money the ordinary person makes over time is modest in comparison and often illusionary given inflation. The stock market works so well for the wealthy because the AVERAGE person invested in it doesnt understand jack shit about anything, and doesnt really care anyway because what other options do most people have? Lead some kind of massive revolution? Not on the menu for the simple jack. The whole country just throws their money into stock because it’s all they know. The public does NOT figure things out on its own. The media has to tell them EVERYTHING. And obviously the media aint telling em this.

That was kinda the whole point of Blades of Freedom, ya know?

But nope! You knew better...

yea I just find it funny that someone would be ok with it. Like... you're down to crash the whole economy and have hundreds of millions of people get ****ed, so long as you make an extra buck. Perfect example of the capitalist mindset and why America doesn't have very long.

[FultzNationRISE]

yea I just find it funny that someone would be ok with it. Like... you're down to crash the whole economy and have hundreds of millions of people get ****ed, so long as you make an extra buck. Perfect example of the capitalist mindset and why America doesn't have very long.

People dont like going backwards. Just not the way of the world. In nature the “old lion” never simply cedes his territory to the young ones, even after years of being the alpha. He will fight for his reign literally until a challenger kills him (or he dies off of disease etc).

Im sure a lot of CEOs dont start out with the “fvck everybody else” mindset. But, power corrupts. And people get comfortable being on top and in charge. And they will do whatever it takes not to fall back into being nobody.

[tpols]

I also don't invest in stocks. Especially in a volatile market like today. Stocks are only worth it if you're wealthy... that is very true. Playing it with low amounts of money and no insider information is basically like going to the casino. You're gonna lose.... especially if its through your job and youre locked in.

[FultzNationRISE]

I also don't invest in stocks. Especially in a volatile market like today. Stocks are only worth it if you're wealthy... that is very true. Playing it with low amounts of money and no insider information is basically like going to the casino. You're gonna lose.... especially if its through your job and youre locked in.


Yup. Thats why learning is so important tbh. Facts, skills, trades etc.

Your portfolio might not survive a radical paradigm shift, but if YOU are an asset.. you can make bones in any market.

That said, having a healthy portfolio has been great for people the last hundred years or so, and cheers to people whove done well from it. And it’s still useful for the forseeable future. But the current system continues to become more and more detached from reality. At some point it is going to change. Not saying it’s gonna change for the better, or into a peaceful paradise. It’s simply going to change SOMEHOW. Some people will get screwed.

[tpols]

People dont like going backwards. Just not the way of the world. In nature the “old lion” never simply cedes his territory to the young ones, even after years of being the alpha. He will fight for his reign literally until a challenger kills him (or he dies off of disease etc).

Im sure a lot of CEOs dont start out with the “fvck everybody else” mindset. But, power corrupts. And people get comfortable being on top and in charge. And they will do whatever it takes not to fall back into being nobody.

I understand that, but it's not like that everywhere. America is 27 trillion in debt largely because of bailouts to private companies that used extremely corrupt strategies to enrich their execs. Germany? They run a surplus. They're also notorious for being rule followers and calm timid people. Their companies don't fraud like us. America's wild wild west capitalistic model isn't sustainable.

[FultzNationRISE]

I understand that, but it's not like that everywhere. America is 27 trillion in debt largely because of bailouts to private companies that used extremely corrupt strategies to enrich their execs. Germany? They run a surplus. They're also notorious for being rule followers and calm timid people. Their companies don't fraud like us. America's wild wild west capitalistic model isn't sustainable.

Youre right. But as you said, Germany is (relatively) small and homogeneous with an ingrained culture, which makes for a much more efficient bureaucracy. It’s a sociological fact people take more responsibility and initiative as the group gets smaller. America is a giant melting pot of cultures, including cringey white SJW dweebs who arent willing to draw any lines. Our population is a shit show. If/when American capitalism collapses, we wont turn into Germany, we’ll turn into Venezuela.

[Long Duck Dong]

Systems like that lead to a collapse... and the top guys just abscond with all the money while everybody else gets screwed. Shit like that is what collapsed our economy in 2008.

Or the tech wreck of 2000. Difference now is most of the big players are making a profit.