Spotify is getting closer to the first profits

Despite tens of millions of users around the world, Spotify still does not give its owners a profit. But they believe that the moment the service becomes profitable, it is getting closer and closer.

One might think that Spotify, which is available in 60 countries and has more than 80 million users, half of which regularly pays a subscription, is a very profitable service. This is a misleading assumption, as the service is still not paying for itself.

It must be remembered that the company must pay licensing fees for the studio for the work used, pay royalties to the artists themselves, pay for streaming music servers, pay salaries to employees and bear other costs of their activities.

Although revenues may be large, profits are still not there. So far, every quarterly financial statement has shown only losses, but investors are hoping to change soon.

Par-Jorgen Parson, a member of the Northzone capital company, is one of the investors in the music service. In his opinion, Spotify should start to make profits next year.

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