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CarpalMac

macrumors 68000
Nov 19, 2012
1,615
3,983
UK
That is true, but five months severance is a better deal than many who are getting laid off lately are being offered.
If they actually do all get that... (spoiler: they don't).


@CarAnalogy -- Editing as my post as it appears the details I was given were incorrect, so it may be that they are. Bad as I think their behaviour is, that is much better than I have ever seen elsewhere.
 
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Abazigal

Contributor
Jul 18, 2011
19,248
21,395
Singapore
Apple pay more than Spotify, so I doubt it.

Apple pays more than Spotify per stream, but Spotify gets more streams (because it has more subscribers) so I am willing to wager that Spotify pays out more to artistes if you just count dollars and cents.

I actually feel that Spotify needs to jettison their free tier to improve their profitability, but that’s a move that likely won’t go down well with users who have come to rely on it.
 
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nnoble

macrumors 6502
Jun 19, 2011
453
536
The only reason for me not subscribing to Spotify is Deezer.
As for the layoffs, employees are made redundant all year round. it’s only ‘just before Christmas’ that makes it a headline.
 
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theluggage

macrumors 604
Jul 29, 2011
7,435
7,244
I actually feel that Spotify needs to jettison their free tier to improve their profitability, but that’s a move that likely won’t go down well with users who have come to rely on it.
…but how many of Spotify’s new subscribers come in via the free tier? Its really their defining feature - you can “share” music with anybody by linking to Spotify, without worrying whether they have a subscription - which probably helps artists get discovered too.
 

Jeeg

macrumors member
Feb 12, 2010
78
22
why don't they launch lossless music? I would gladly pay more.
I don't use Apple Music because Apple doesn't license it to the HiFi manufacturers and you kinda have to use an Apple device as the source. Spotify Connect is so much more convenient.
 
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Someyoungguy

macrumors 6502a
Oct 28, 2012
500
812
..and Spotify needs less Joe Rogan.
They could have layed off this one guy instead. 100 people x $100K is half a Rogan, though Joe’s contract was rumored to be 42 months. Still, I’m sure it will be renewed this year for more than the last time.

*next year
 
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theluggage

macrumors 604
Jul 29, 2011
7,435
7,244
Why did Spotify need almost 6,000 employees in the first place?!?
de Solla Price's law: with N employees, 50% of the output is produced by √N of the employees.
(See also "The Mythical Man Month"). So if your gut tells you that it should take under 100 people to run something like Spotify, 6000 is probably about the realistic figure.

It's not that people are lazy or unproductive, it's just that the larger the team, the more of everybody's time is taken up in communications and administration - and the solutions (and lack of a single magic solution) involve telling the C-suite things they don't want to hear.
 
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ginkobiloba

macrumors 6502a
Jul 2, 2007
624
1,729
Paris
Great news ! Spotify ( and Daniel Ek) is a terrible, terrible company that deserves all the hate it gets from artists.
i hope the fired employees will be swiftly hired by their competitors.
 
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CarAnalogy

macrumors 68040
Jun 9, 2021
3,911
7,031
Mr. Sympathetic here...I guess if you crashed your car, broke up with your partner and your dog/cat ran away all on your birthday, it's just like any other day right? "The Holidays" (Christmas, religious or not) is supposed to be a special, happy time, not one where you worry if you'll have income next month. Sheesh...

It's true. And yet holidays and birthdays are often the most stressful and disappointing times of year. Maybe because of increased expectations.
 

picpicmac

macrumors 6502a
Aug 10, 2023
895
1,167
For myself, Youtube Music covers almost all of my needs. Without charging me a penny. If I really wanted lossless then I'd have to go for one of the services such as from Apple or Qobuz... but I'm find with Youtube quality.

Spotify pays certain people like Rogan in order to get large numbers.

I'm not adverse to going back to the old days of buying music on physical media. Better quality sound, and the artists likely make a little bit more.
 
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Steve121178

macrumors 603
Apr 13, 2010
6,354
6,817
Bedfordshire, UK
This fear of firing during holidays really seems to be an american thing? Too many ”lampoon” movies?
Having worked for a few American companies, it's done to keep the shareholders happy. Nothing makes a shareholder happier than knowing a mass cull of people is happening as it's the easiest and quickest way to cut costs of a business that is failing or having a major slump. It's one of those "looks really good on paper" tick box exercises.

Despite being a Swedish company, Spotify is listed on the NYSE. So has to please those investors as money is so important to Americans.
 

Sorinut

macrumors 68000
Feb 26, 2015
1,672
4,549
For myself, Youtube Music covers almost all of my needs. Without charging me a penny. If I really wanted lossless then I'd have to go for one of the services such as from Apple or Qobuz... but I'm find with Youtube quality.

Spotify pays certain people like Rogan in order to get large numbers.

I'm not adverse to going back to the old days of buying music on physical media. Better quality sound, and the artists likely make a little bit more.

You don't get Youtube Music "without charging me a penny" unless you subscribe to Youtube premium, which I have zero interest in doing.
 

Robert.Walter

macrumors 68040
Jul 10, 2012
3,021
4,242
“Over the last two years, we've put significant emphasis on building Spotify into a truly great and sustainable business…”

…Now that we are there, we don’t need you anymore. You are a drag on maximizing profits. You are expendable.

If I were a subscriber to their service I would be cancelling so hard their CEO’s head would be spinning at 78 rpm.

Hey CEO Scroogeify (or is it Screwgify?) Bah Humbug to you and your corporate roadmap!
 

thays133

macrumors 6502
Mar 25, 2021
405
691
Yeah, maybe we don't have a clue, but how does an an app need 6,000 people to keep it up & running?!

There is a lot more to the company than just the app. The dev team is going to only be a small part of that group.

Things like support staff grows with users fairly linearly. For X number of users you need one tech support person. For X number of tech support people you need 1 manager and so on.
Then you have data center management and dont forget you have to have people to manage advertisement and sales for that. you need people to manage content and coordinating there. Marketing people and so on. It is a lot more than just the app. Product mangers and so on. Plus you need 1 manager/Lead for every 5-10 people. Even if someone is not offically a manager someone is going to be handling that type of work and tracking everything. Then as you get larger you get HR departments which again scale with a company size.

Tech support can easily be the largest part of a company. I was at one software place that had 400ish people. over 1/2 the company was just our tech support. The entire development side was 60-70 people total. Support grew based on the number of users. Only so much we can do about that.
 
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TechnoMonk

macrumors 65816
Oct 15, 2022
1,462
1,884
I’m pretty sure the way Spotify becomes profitable is simply by ending the free tier so the paying customers can stop subsidizing them. The problem is pretty evident with the note they added 23 million users but only 6 million were subscribers. So 75% of your users are taking a free ride? That’s not a recipe for success.
It works for large companies like Amazon, they can be loss leader and drive competitors out of business. They can do what ever after, Spotify is in a tough spot with competition from bigger companies Who can bleed longer. There should be more incentives, or differentiators from subscriptions to convert those free tier users.
 
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orl2222

macrumors member
Oct 21, 2003
97
76
so cal
..and Spotify needs less Joe Rogan.
Yup! This like what happened to Sirius/XM with Howard Stern. Payed him a ton of money, serveral channels devoted to him. Because of limited satillite bandwidth, Music stations were eliminated, and the rest were cut way back on quality. AM radio sounded better. Subscribers left in mass. Now Nobody really cares about subscribing to them, and I'm an old boomer, I quit them when this happned.
 

mdatwood

macrumors 6502a
Mar 14, 2010
894
846
East Coast, USA
Every tech company except maybe Apple over hired the last few years. Now that rates are going up and we're mostly returning to 'normal', those companies are correcting the over-hiring. Spotify in particular only recently barely started making a profit after years of losses so they acutely feel the rate increase.
 
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