Why Spotify Keeps Losing Money

Analysis of Spotify’s profitability problem and the company’s recent efforts in turning the situation around. Despite being the world’s largest music streaming platform, Spotify has never made a single dime in profits so far. The company has never had a profitable year in its history, and over the years its losses has added up to over 4 billion euros. For a company that has not only disrupted the entire music industry but also completely revolutionised the way we consume music, one would reasonably expect Spotify to be drowning in profits. However, the reality is that Spotify has never been able to turn a profit, making it the only software company that generates over 10 billion euros in revenue each year to consistently lose money. Sources & footnotes: 00:00 Intro 00:43 Why Spotify Loses Money 02:45 Spotify vs Other Streaming Platfo