Spotify: It Saved Music and Lost Money for 18 Years

Spotify had never made an annual profit when it listed on the New York Stock Exchange in April 2018, under the wrong flag. So why did the world's biggest music-streaming service take 18 years to make its first annual net profit? The answer goes back to Stockholm, to piracy, and to the deal with the record labels that made Spotify possible, and kept it in the red. 0:00 The wrong flag 1:02 A country of pirates 2:40 Faster than piracy 3:33 The €8,804 deal 5:08 Owning the listener 6:22 Who gets paid 7:28 Apple's 30% 8:26 Back to Wall Street 9:24 The podcast bet 10:45 The first profit 12:21 The why behind Spotify Sources (also shown on screen): Reuters; AP (3 Apr 2018) · Daniel Ek letter, SEC filing (2 Apr 2018) · Spotify F-1 (2018) · Spotify annual reports (2018–2023) · Spotify results, SEC 6-K (Q4 2024, Q4 2025, Q2 2026) · Spotify Investor Day (2022) · Spotify Loud & Clear (2025) · IFPI Global Music Report 2018 and 2026 · EFF (2008) · Kreitz & Niemelä, IEEE P2P 2010 · Luxembourg company filing (Dec 2008), via Music Business Worldwide · Leaked Sony–Spotify contract, The Verge (2015) · Stockholm District Court (17 Apr 2009) · Music Business Worldwide (2018, 2025–2026) · Taylor Swift, WSJ (7 Jul 2014); Daniel Ek (11 Nov 2014); CBC · Fortune (3 Nov 2014); CNBC (9 Jun 2017) · AppleInsider; Fortune (Jul 2015) · European Commission (4 Mar 2024) · Aguiar & Waldfogel, EU JRC (2015) · ArcticStartup (2008) · NYSE market data (Oct 2026) Footage: Storyblocks (including editorial footage of Spotify). Graphics are original illustrations with labelled sources. Music: Storyblocks. Narration voice is synthetic. This channel is independent and not affiliated with Spotify AB. Nothing in this video is investment advice. #Spotify #Business #MusicIndustry