Spotify, the music streaming company, loses millions of dollars and collapses in the stock market
November, 01; 2020. By
The Swedish company Spotify, known for being one of the first to offer streaming music to much of the world, is stagnating in its position as an eternal aspiring to give profits as it has plummeted 10% in the stock market this Friday due to the quarterly results it has offered, with millionaire losses.

All this is a cluster of situations that do not suit the aforementioned streaming company at all: on the one hand, the artists want more of the pie and request an increase in royalty payments; on the other hand, the fierce competition that exists with other platforms such as YouTube, Tidal, Apple Music or Amazon Music are, as we say, weighing down the company's stock market value.

And it is that Spotify started off on the right foot autonomously a few years ago; convinced the main record companies to participate in the shareholding and then went public, a very common operation among internet companies to "obtain easy financing" through the sale of titles to the unwary who let themselves be carried away by the well-known name of the platform, without examining the accounts in detail of the company. In this way, Spotify becomes the "eternal unicorn", that is to say, that amasses many users but that gives losses, having already spent some years since its initial launch, or in a kind of fiscal invention for record companies to alleviate their payments to the different public finances since the company makes losses (this last point is not proven). Anyway.

On the other hand, some other medium-sized companies are organizing; this is the case of the Berliner Philharmoniker whose online activities with live concerts for the internet and charging for absolutely all (or almost) their content, individually, and with a mobile application that is up to par, are leaving behind dependency on Spotify as the only platform to distribute their music.

In short, Spotify is today a place where you can be influenced by the "foam" of music, that is, its most superficial layer; but if you want to dig a little deeper, beyond the current ephemeral successes, we will have to look elsewhere for the content, at least in a good number of cases, which are increasing. And we fear that it will end up engulfed by other more solvent services, some better and others worse, as we have commented.