It seems that Spotify has a large revenue stream of about 1.36 billion a quarter

Question

It seems that Spotify has a large revenue stream of about 1.36 billion a quarter, and a following of over 75 million. While it seems like Spotify is doing well, it is reported that they are not making money because Spotify pays out large royalties to its record labels and music providers.

What kind of strategy can Spotify take to rectify this situation? How can they keep their program expenses down while at the same time growing its user base to make more profit? If You use any references, please provide. Thank you.

Explanation / Answer

Spotify is a Swedish entertainment company specialises in music, podcast and video streaming. Spotify can use following strategies to rectify their situation and to keep their program expenses down while at the same time growing its user base to make more profit –

Reference – Wikipedia, www.spotify.com

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