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Business

Spotify thinks profits, and Apple defence

Opening sequence

Opening sequence

Business

Spotify thinks profits, and Apple defence

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COMING UP:Spotify thinks profits, and Apple defence

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Transcript

00:00:00
>> Spotify is laying plans to finally make a profit and keep Apple at bay. The Swedish music streaming service is a household name. With 30 million paid subscribers it's also the dominant player in its market. But Spotify has never made a penny, and now has fast-growing Apple Music on its heels.
00:00:19
Reuters Stockholm correspondent Mia Shanley has been talking to the company.>> And they've been telling me a lot about their basic growth plans. And their focus right now is really mainly on their global domination and getting as many users as they possibly can. Making streaming as mainstream as they can.
00:00:39
So that they can have better leverage with the record labels>> Spotify earned over 2 billion dollars last year from subscription fees and advertising. But it pays more than 80% of that to record labels and artists in return for music rights.>> Analysts said that the company might get a better deal, if it could hit 50 million subscribers.
00:01:00
Spotify also wants to find other revenue sources.>> So, they're really moving into video. They're also looking at, possibly, other ways that they can make money, by, perhaps, selling concert tickets, perhaps, looking at merchandise. How they can get into the business of getting t-shirts and hats and gear to fans.
00:01:23
>> Spotify raised about $1 billion from investors earlier this year. So far its backers are keeping the faith. But history is littered with .com startups that were all promise and no profits. Soon realtors Spotify will have to show that it can actually make some money.