Tidal $28 million losses, alternative streaming services for Roon?

Spotify lost $194million last quarter.

Pandora lost $191million so far in 2016.

Apple Music is surely losing money too, but hasn’t said how much, but it is irrelevant since Apple Music is not a meaningful profit center for them.

Deezer has lost over $100m as well

Clearly normal thinking about profits and losses in this business leading to death of company is clearly not how things work.

Sooo… Why are you worried? :slight_smile:

BTW, in this business, there are 2 ways to become profitable: stay small and grow organically, or grow so huge that you don’t need marketing.

Apple is taking the latter approach (use iOS ecosystem to grow).

TIDAL (pre-JayZ) and some years at Rhapsody seem to be the former approach. Rhapsody was doing good in the years when they stagnated growth. Whenever they reach for more, they lose money.

The problem is that allow these businesses want to bleed money, sell music content at a loss, market like crazy in hopes to get large user base, and then eventually profit.

Unfortunately, they keep growing the costs while doing so.

Not going to happen, and they even denied it recently.

We are always doing this – it’s prudent business practice.

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