The moves are pushing the company into new areas, but make no mistake: These actions have as much to do with economics as they do with expansion. The streaming service now has 124 million subscribers on the strength of its nearly unlimited buffet of tunes, but that buffet requires Spotify to pay rights holders 70% of revenues just to serve it up, which limits its margins.
“Since podcasting isn’t a mature business like music, I’d expect Spotify to have a little more flexibility in negotiating terms with content creators,” says Ben Arnold, an analyst at NPD Group.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: latimes - 🏆 11. / 82 Read more »