streaming music

Spotify’s Business Model Called ‘Unsustainable’

Spotify playlist (screengrab)

In 2010 Swedish music streaming service Spotify was on the rise, with a 151 percent jump in revenue. According to PrivCo, a company that tracks financial data, the bottom almost fell out for Spotify in 2011 and the service’s current model is “unsustainable.”

CNET obtained confirmation from Spotify that numbers reported by PrivCo were correct–but not news. Spotify’s losses since jumping into the U.S. market were first reported in August by theĀ Wall Street Journal.

Regardless of who reported what first, PrivCo’s assessment might sting at Spotify HQ: Read More