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Spotify may be racking up subscribers and challenging online music incumbents such as Pandora...

Spotify may be racking up subscribers and challenging online music incumbents such as Pandora (P) and Apple (AAPL), but it's never going to be profitable, claims MP3tunes founder Michael Robertson. Among his reasons: Spotify's deals with record labels force it to accept the worst of 3 bad royalty payment options, and it has to put up with onerous reporting and file-conversion requirements.
Comments (4)
  • Modernist
    , contributor
    Comments (2109) | Send Message
     
    A Spotify competitor criticizing Spotify. Not a surprise. Also not a surprise that a libertarian oversimplifies an economic argument.
    11 Dec 2011, 07:22 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    Whaaa? MR is right about the majors. They will never let Spotify become profitable. Breakeven? Maybe. Precedent? Hulu.
    11 Dec 2011, 09:20 PM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    Apple continues and would be the leader for the future. They have an excellent team, they just need to follow the steps of Steve. Spottily is increasing subscribers at a relative fast way because it is starting from a very low penetration rate in the market.
    11 Dec 2011, 10:17 PM Reply Like
  • surfnspy
    , contributor
    Comments (415) | Send Message
     
    I subscribe to Spotify but, the tunes I like aren't there half the time. If I liked top 40 then it would be fine but, I don't. Thinking about canceling.
    11 Dec 2011, 11:04 PM Reply Like
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