A new report suggests that streaming service Spotify is in trouble - big trouble.
Although Spotify is due to make the leap into the video streaming service, it's looking more and more likely that their plans for expansion may be put on hold indefinitely.
According to financial documents, Spotify brought in revenues of over $1 billion, yet somehow managed to lose over $197 million despite this.
As for its subscriptions, the streaming service has 60+ million users, however only 15 million of them pay the requisite fee for the full service.
Said financial documents also reveal that over 91% of their funding comes from subscriptions, with the rest being made up of advertising.
Despite all this woe, however, Spotify enjoys near-total market share when it comes to music streaming. However, that may not be the case for much longer.
Apple is currently on track to release Beats, which will directly compete with Spotify whilst Jay Z's TIDAL slowly builds up a customer base.
Not only that, many artists have been speaking out against Spotify's compensation packages for artists. Taylor Swift famously pulled her entire catalogue from the service last year in protest over the paltry earnings the service earned her.
With the rise of TIDAL, other artists are being swayed away from the streaming giant to Jay Z's more lucrative earning contract.
Via NYT
