“The streaming business has to slowly move from a free economy to a paid economy as the sustainability of ad-supported revenue model is a big question mark.”
The grim financial outlook comes as rumors intensify over plans by Spotify to go public. But just like Pandora, Spotify’s financials remain ugly and are unlikely to improve. “Pandora has never made a profit and we think that the company will never make a profit, unless there is a major change in strategy,” Generator concluded.
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