Spotify Requesting Labels Cut Costs, Expand Mobile Services

In order to up their profit, online audio streaming platform, Spotify, is planning negations with three high-profile record labels – Warner Music, Sony and Universal – urging the companies to cut costs as well as expand their mobile trials. As it currently stands, 70% of Spotify’s revenue is directed towards licensing fees, 20% to customer acquisition, and the remaining 10% to leftover company cost. Reports suggest it is unlikely that Spotify will completely collapse and deals are expected to be done between select record labels. Additional ad support is one way that the UK-based outlet could reasonably heighten its own profits, although some instances may lead to paid customer subscriptions. Would you be willing to pay for Spotify?

Source: The Verge