Quote:
Originally Posted by Kali Yuga
Pandora is losing money. They lost $16 million, on $250 million in revenues for FY2012.
Spotify lost money in 2011, $56 million on $244 million in revenues and perhaps 5 million paid subscribers.
As a commercial service, Napster tanked and had to merge with Rhapsody.
Rhapsody might be eking out a $1 million profit, on $125 million in revenues and roughly 1 million users.
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Spotify could be profitable tomorrow if it want to by limiting the free user. But it want to focus on growth. Scale is important for a service like Spotify.
And it is valued at $3 billion from the latest investment.
It is not going anywhere.
If Rhapsody has 5 million paying subscribers instead of just 1 million subscribers, it would be in a much better shape. Even with just 1 million subscribers, it has been profitable.
Subscription music worldwide just need to reach about 30 million paying subscribers to overtake Itunes. Very doable. It's just a matter of when.