Can Spotify keep topping the chart?

Spotify has hit its 100-millionth paying subscriber, but can it retain the title as the world’s biggest paid music streaming platform?


Spotify has hit its 100-millionth paying subscriber, but it will "have to change its tune" if it is to retain the title as the world's biggest paid music streaming platform, says The Observer. Revenue at the New York-listed Swedish business jumped by a third year-on-year in the first quarter to €1.5bn, although it still made a loss of €142m.

Paying subscribers are Spotify's main revenue source, with a £9.99 per month plan granting access to a library of about 40 million songs, says Simon Duke in The Times.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Spotify has played a vital role in "reviving the fortunes of the music industry in the digital era", says The Observer. Yet it is now a "victim of its own success". Major record labels such as Sony and Universal are squeezing it for ever more fees in return for licensing deals. Deep-pocketed Google and Amazon are rolling out their own free music services. Management has responded with a €358m acquisition binge as it seeks to branch out into podcasts. It also wants to imitate Netflix by owning some of its own content.

Don't be fooled by the underdog pose, says Lionel Laurent on Bloomberg. Spotify is "no angel". It is still twice the size of the number two player, Apple Music, and the battle has turned ugly. Spotify has complained to the EU about Apple's allegedly unfair charging practices, with reports this week that a formal investigation into the US tech giant is imminent. This is a clash between "two wannabe monopolies" with the same plan: burning lots of cash to corner a market. That is good news for consumers, but bad news for suppliers otherwise known as "musicians".



Stock markets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Stock markets

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Trade-war ceasefire boosts stockmarkets

Stockmarkets sighed with relief after the G20 summit in Japan brought a handshake between Donald Trump and Xi Jinping.
4 Jul 2019

Most Popular


Money Minute Friday 17 January: UK weakness likely to continue

Today's Money Minute previews UK retail sales figures the UK, inflation data from Europe and industrial production from the US.
17 Jan 2020
House prices

UK house prices may be heading for a Boris bounce

The latest survey of estate agents and surveyors from the Royal Institution of Chartered Surveyors is "unambiguously positive" – suggesting house pric…
16 Jan 2020

Currency Corner: how high can the pound go against the euro in 2020?

In the month in which we should finally leave the European Union, Dominic Frisby takes a look at the pound vs the euro and asks just how high sterling…
13 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020