As a result of the cost of music royalties and other licenses, streaming consume business costs by a large amount, causing the benefits obtained services are small.
More than 80 percent of all Spotify stream revenues are paid to record labels and performers in other music industries.
A large number of users make a profit for Spotify to earn more revenue. Spotify is able to beat similar services from Apple and Google, by offering free services subsidized by advertising. However, the reported ads generate only about 10 percent of Spotify's annual revenue.
The free service also had a hard protest from a number of famous artists, like Taylor Swift, who just reached an agreement with Spotify and Apple Music services in July.
For that reason, Spotify has spent the last few years solidifying its position in video streaming services, claiming to generate greater benefits than traditional TV.
To build the video platform Spotify must invest in licensing collaboration agreements with existing networks such as Comedy Central and ESPN, along with original video, which is generally centered on music documentary content.
In the application, users can now find serials like Spotify Landmark and Flash Frame, with flashbacks and intervies with artists like Green Day, Metallica and Blink-182.
There are also collaborative programs with popular and influential playlists such as RapCaviar, and events inspired by comedian James Corden, Carpool Karaoke, named Traffic James.
However, Spotify's efforts require him to spend a lot of money. In May, Sportify reported a loss of US $ 637 million from a profit of US $ 3.4 billion, in its fiscal year 2016 financial report.
