Apple Music Rival Spotify on Verge of Turning A Profit

2016-12-02 1746 Posted by 3uTools

Apple Music Rival Spotify on Verge of Turning A Profit

"Up until now, I think it's been growth, growth growth," Par-Jorgen Parson told Reuters. Parson is a general partner with venture capital firm Northzone, and one of Spotify's first investors. Asked whether Spotify could turn a profit next year, he said it was "absolutely" the case.

Spotify now has a presence in 60 markets, and over 40 million paid subscribers, plus an even larger contingent of people listening on its free ad-based tier. To date though it has posted a loss in every quarter, pumping money into expansion and/or the music licenses it needs to offer content. The company doesn't generate much money from ad-based listeners, and regularly encourages them to upgrade.

While Apple Music has far fewer subscribers —somewhere north of 17 million in total —it's thought to be doing well financially. Even if it weren't, Apple isn't dependent on its success, and is likely using the service as a way of keeping people attached to its hardware and software platforms.

Apple is rumored to be considering a a temporary 20 percent price cut
 on its individual and family subscriptions. If so that could dramatically undercut Spotify, which doesn't have any alternate sources of revenue to fall back on.

Source: appleinsider

Related Articles

iCloud Bypass Bug Discovered in iOS 11 iOS 10.3 Jailbreak / iOS 10.3.1 Jailbreak How to Download Apple’s Official iOS IPSW with One Simple Step? Backup Your iOS Device When It's Disabled or in Password in Normal Mode PanGu Team Has Successfully Jailbroken iOS9.3.3 and iOS10 Beta1 3uTools is a Collection of Useful Tools Jailbreaking and Flashing Your iOS Devices Apple iPhone 7 Plus with Leaked Photos and iPhone 7's Packaging Box iOS9.3 Beta 4 and New iOS 9.2.1 Have Been Supported by 3uTools