
How does music streaming websites earn money? - anbux
How do music streaming websites like spotify earn revenue? What is there business model?
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philipkiely
By my understanding, Spotify has two major sources of revenue: advertisements
on unpaid accounts and subscription fees on paid accounts. The subscription
fee for a paid account is 10 USD/month (5 USD for students) and I am unable to
speculate about the ad revenue per unpaid user.

Spotify has the same expenses as any other tech company, (programmers,
servers, office space, lawyers, 100 other things) but also has to pay
licensing fees to artists. A major issue in the music industry right now is
the low fees that streaming platforms pay artists.

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acoye
They only get only a small cut on prices set by "majors" Some streaming
companies try to rollout the netflix model (producing artists / cut the middle
man) but it is david v goliath.

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anbux
Are they living on subscription model?

