Talking to the Wall Street Journal, Spotify CEO Daniel Ek is quite chipper. Music Ally has read the full interview:
“I think a lot of people just look at the financials and say: ‘Oh wow, losses, that’s really, really bad.’ That’s not at all how we see it, we see that we’ve actually now proved our business model,” he says. “The difference between what we pay out in royalties and what we actually take in in revenue is increasing, which is positive.”There's two things here, surely: if you're still making huge losses (over USD75million in the last twelve months) that might prove your business model, but it would appear to prove your business model doesn't quite work. A bleeding patient is still bleeding, even if not quite bleeding to death.
Secondly: given how unhappy many musicians are with what they see as widdly little royalties , trumpeting that you're taking in cash at a faster rate than you're sharing it out might not be the soothing sound you could me making.