Spotify is Going Public

As Spotify prepares to go public, there's no obvious solution to its shaky business model

This article on CNBC raises important questions about Spotify's ability to survive in the long term.  Although it is by far the most popular streaming service, it has never turned a profit.  And given how little they pay musicians and songwriters, how can they not make a profit?

As the most popular and celebrated music streaming platform, the company has its share of boosters. Still, as it prepares to join public markets, albeit in a somewhat unusual form, it faces the same problem other internet companies have faced before — a balance sheet that's deeply in the red, and a business model that doesn't show an obvious way to profitability.

Perhaps just as important, it will be going up against deep pocketed competitors like Apple Music and Amazon Music, both of which can afford to operate music services forever without making a dime.

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