I can only wonder how much of the costs are fees to the music companies. Is there any way to figure out at all what Spotify , Rdio, etc have to pay to provide their selection?
You must be joking. Spotify paid out 0.003 per play on my last royalty statement. Pathetic. The sooner Spotify goes under, the better for the music industry.
Do you seriously think people would buy the CDs of all the music they listen to in Spotify if it went offline? And go from spending $10/month to hundreds?
That kind of assumptions is what leads the RIAA to calculate losses bigger than the entire world's GDP.
I would have to think people paying the $5 or $10 subscription fee would be listening to more than 11 hours. Why would they price themselves so far under what it would take to turn even a tiny profit?
I think they're losing money on how many songs people listen to vs subscription cost. The advertisement isn't offsetting it.