Spotify's business model is not profitable despite its dominance in the music streaming market. While pioneering unlimited music streaming, its cost structure is not static like Netflix and becoming more expensive as listeners stream more. To solve this, Spotify spent over a billion dollars in podcasting as a new medium, but has failed to differentiate itself from competitors. Instead, it hopes to develop Creator tools and advertising support to help creators make and advertise their own content, taking a cut of the revenue. However, this may not attract more customers but could boost podcasting's popularity and solve the rental problem.
1. Spotify's business model is struggling.
2. Spotify has invested over a billion dollars in podcasting.
3. Spotify has become the biggest podcast publisher in the US with 100 million listeners.
4. Spotify's podcast investments have not been profitable.
5. Spotify hopes to boost its advertising and creator tools division.