Why Spotify Struggles to Make Money from Music Streaming

<p>Spotify is the world&rsquo;s most popular music streaming service, outperforming competitors like Apple Music and YouTube Music, with its 220 million premium subscribers and over 400 million monthly active users.</p> <p>It offers access to over 70 million songs, podcasts, and other audio content from various genres and artists.</p> <p>While operating on a freemium model, Spotify allows users to listen for free with ads and limited features or without ads by paying a monthly fee.</p> <p>Spotify was founded in 2006 in Sweden by Daniel Ek and Martin Lorentzon, who wanted to create a legal alternative to online music piracy that was rampant at the time.</p> <p>They managed to convince the major record labels to license their music catalogs to Spotify in exchange for a share of their revenues and company equity.</p> <p>Spotify launched in 2008 and quickly gained popularity, especially after partnering with Facebook in 2011. It expanded to many countries and had its IPO in 2018 with a valuation of $26.5 billion.</p> <p>However, despite being the king of music streaming and having a loyal fan base, Spotify has never been profitable.</p> <p><a href="https://medium.com/brain-labs/why-spotify-struggles-to-make-money-from-music-streaming-ba940fc56ebd"><strong>Click Here</strong></a></p>
Tags: Music Spotify