Week 22 - 'The clock is ticking for Spotify'

'The clock is ticking for Spotify'
http://www.bbc.co.uk/news/business-38930699

• The Swedish firm is now a major player in 60 countries
• streaming accounted for 51% of music consumption last year
• it hatches its plans to go public
• In the interest of finally becoming a profitable company, it would like to lower that percentage, but this is unlikely to go down well with artists, who argue that the royalties they receive from streaming are unfairly low as it is
• "If it's not already too big to fail, it's headed in that direction quickly," concludes the magazine

I think that it is no surprise that Spotify isn't making a profit given the discounts and the amount it spends on royalties. Another issue that reduces profit is the 'free' version of Spotify Users aren't entitled to pay as long as they endure ads, which i don't think will make as much profit as a payed subscription would.