Transition Music Corporation | The Spotify Model May Be Sustainable After All
15068
post-template-default,single,single-post,postid-15068,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-10.0,wpb-js-composer js-comp-ver-4.12,vc_responsive
 

The Spotify Model May Be Sustainable After All

The Spotify Model May Be Sustainable After All

Spotify UK Shows That the Freemium Model Is Not ‘Unsustainable’
By Glenn Peoples

October 9, 2012
From Billboard.biz

A business model that pays rights holders nearly every dollar, euro or pound generated is clearly not sustainable. This fact is obvious to Billboard readers as well as a digital service’s management and the company’s investors.

Last week I wrote about Spotify’s financial statements posted at PrivCo, a website that posts the financial statements of privately held firms. My first impression was that PrivCo’s numbers looked off. After PrivCo’s CEO sent me a link to the full financials and walked me through the numbers, I better understand how the numbers line up — but I don’t agree with his negative assessment.

Spotify is indeed losing money, but I don’t think its business model is unsustainable. 

Read More:
http://www.billboard.biz/bbbiz/industry/digital-and-mobile/business-matters-spotify-uk-shows-that-the-1007975522.story