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Spotify: Many Steamrollers, Few Nickels
www.thediff.co

Spotify: Many Steamrollers, Few Nickels

Plus! Theaters' Lifeline, Uber + GrubHub, Scooters, Amazon's Gouging Gambit, and More...

Byrne Hobart
May 14, 2020
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Spotify: Many Steamrollers, Few Nickels
www.thediff.co

Can a software business work without software margins? Spotify is a great test case. The company sells subscriptions and offers an ad-supported free product, both of which can be nice, high-gross-margin businesses. Unfortunately for Spotify:

  1. Their suppliers in the music business are all legally-protected monopolies.

  2. Their biggest distribution channel, app…

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