How does Spotify make money?
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The Secret: Where does most of Spotify's revenue go?
To rights holders: labels, publishers and artists. Spotify says roughly two-thirds of every dollar it makes from music goes to rights holders. That's why streaming margins are thin and why podcasts and audiobooks matter to it. Source: Spotify Loud & Clear – How much money does Spotify keep?
Why They Stay: Why do subscribers rarely switch services?
Playlists and personalized recommendations live there. Years of listening history train recommendations and playlists. Leaving feels like losing your taste profile. Source: Wikipedia – Spotify
Why They Leave: What makes people cancel?
Price increases or a bundle elsewhere (e.g. with a phone plan). Catalogs are nearly identical, so price and bundles decide. Family and student plans exist to keep price-sensitive users inside. Source: Spotify investor relations