this post was submitted on 17 Dec 2023
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Spotify doesn't make profit from music streaming, despite having over 400M monthly active users, because it pays two-thirds of all its revenue to the rights holders. (open.substack.com)
submitted 1 year ago by 4realz@lemmy.world to c/technology@lemmy.world
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[–] chameleon@kbin.social -2 points 1 year ago

Not that high. Spotify uses some pretty tight compression (not good, just tight); most users get 96-128kbit/s AAC, premium can go a bit higher if opted in. That works out to about 16KB/s or 58MB/hour, assuming nothing's cached.

Bandwidth pricing very much goes down with scale, not up. But even the non-committed AWS pricing at Spotify's scale is 2 to 3 cents/GB. You end up paying way less than that with any kind of commitment and AWS isn't the cheapest around to begin with.