Cost of Spotify's free service cutting into profits | Info hors face book et twitter | Scoop.it

Spotify is facing a huge challenge in making enough money from its subscribers to overcome the costs of its ad-funded free music service, according to report from Enders Analysis. The research firm, taking a closer look at Spotify’s potential path to profitability, highlights that Spotify generates a healthy sum selling monthly subscriptions, pulling in gross profits of USD76m last year. However, it spent almost the same sums offering free music as a marketing tool to get users hooked on the service and then convert them to paying.


Via midem, Jérôme Rastoldo