2 Ways Spotify Can Boost Its Profits

2 Ways Spotify Can Boost Its Profits

Audio streaming giant Spotify (NYSE: SPOT), has drawn lots of criticism from investors because its expenses eat away at so much of its revenue. Since the majority of its cost of revenues is paid out in royalties to the major music labels, Spotify touts a measly 25% gross margins. Early on, Spotify needed users, and the labels owned the music.