
Spotify operating at a loss due to music licensing fees - zoowar
http://venturebeat.com/2011/10/11/spotify-operating-loss/
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kvnn
From <http://www.crunchbase.com/company/spotify> I see that spotify received A
LOT of funding this year, but were they funded prior to that?

This life cycle is strange to me. I understand this is talked about all of the
time, but, help me :

They built the product, are operating at a loss, and could not survive without
funding.

So they grow their user base before their business mode can afford its own
infrastructure. The VC model supports the infrastructure and the user base
becomes a capital good.

Is it accurate to say that a funded company's value is much more complex, and
abstract, than a bootstrapped company's?

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mr_eel
Or conversely, they’re operating at a loss because they don’t charge customers
enough.

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zoowar
Clearly it is licensing fees that are killing music streaming.

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kvnn
What are you actually trying to say?

