Quote:
Originally Posted by Top100EbooksRank
Which is why Spotify is opting for GROWTH GROWTH GROWTH instead of PROFITS PROFITS PROFITS. They are thinking long-term instead of short-term profits.
The free streaming is the bait. It is costing them a lot of money but as long as 20-25% of the free users eventually switch to paid users, it is well worth the money that Spotify is losing right now.
|
Yesss, we saw how well this strategy works with FACEBOOK.
Facebook didn't become profitable. It just became
uncool and
annoying.
I think such a strategy can only work if you're actually selling something real - real stuff for real money - like Amazon and Apple do. But as long as a user is used to get everything for free (like MP3s or Facebook Spam) it's a bit more difficult. User habits change every few years, and when your mom is on Spotify, you need something else..