Spotify is either poorly managed (paying employees too much/paying too much for everything/gouging VCs/the like), paying content providers too little, and/or not charging enough for ads and subscriptions. Their business model is currently a money pit for their investors.
I think it was recently reported that Spotify pays out $7 from every $10 (70%) in subscription payments. I remember Apple saying they'd pay out a percent or two more than that in return for having a free grace period where they paid out very little for new potential subscribers. At least according to Apple 70% is the flat-rate payout for music streaming subscriptions in general isn't it? But with Spotify having so many on free plans I can see it as an issue. At least Apple's free tier has time limits.
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