Updates
I decided to go with Spotify to decorate my first page. I've met a Dominican woman at a cafe and seen Spotify app installed on her phone.
What does Sportify do?
1. They are doing music streaming and podcasting service. It is available almost over the world, except Russia(withdrown for war), China(your guess is right), East Africa(at war).
2. The way they make money is ads business and an rest margin after paying loyalty to copyright holder. For further information, they pay to them as loyalty based on the number of how many an music is streamed by users.
3. They suggest users two options that are a Premium and a Ad-Supported. Users can choose one of two.
Premium can : 1) Download music offline 2) Personalize playlist 3) Access to 80 million songs
4) listen on multiple devices. 5) Away from ad during listening
Ad-Supported can't : What Premium can do but some with limits.
Financial
1. The revenue of Spotify has kept growing up from 2017 to 2021 year.
2. But, EPS is still in loss, which is the most riskest danger for them. The Stockanalysis predicted Spotify would operate in the black since 2023.
3. Premium subscribers are taking 87.40% of their gross revenue, which is the critical cashcow of their business.
4. The number of Premium has been going up every years.
CEO story
Daniel EK who is swedish and current CEO fo Spotify started his first business at age 13. He made websites for small companies - I've tried finding out what kind of websites he had made but not found yet - and soon he recruited 23 classmates from his school.
He served in a senior role at Nordic auction company, Tradera, which was acquired by eBay and worked as the CTO of browser-based game and fashion community Stardoll. Nevertheless of his on-going successful carrer, he was not satisfied by them. Later, he made an online advertising company, Advertigo, which was taken over by TradeDoubler and was the destiny when he met Martin Lorentzon who is co-founder of Spotify.
EK and Martin had seen P2P music service Napster and Kazaa had been shut down. They got to realize "you can nevery legislate away from piracy. But, they had an absolute idea that it is just a question of making better service than piracy.
Why is their headquater in Luxenbourg but not in Sweden?
EK and Martin have been thinking Swedish government have been shit about housing, taxation, education. They have hated a high tax for themselves who have many stock options on Spotify. They've kept complaining that Sweden government would make it difficult to incentivize startups and programmers to start business. So, They've moved HQ to Luxenbourg where it is charging a little.
Personal Life
EK invited Bruno Mars and Mark Zuckerberg at his wedding with Sofia Levander who is his longtime partner. And he is a lifelong supporter of Premier League Club Arsenal that he tried to buy once - he is still wating for it to be put up for sale. I think he is enjoying his life as an billionnaire.