Few cents per customer? I don't think you have a lot of experience in this field. Such cost is expensive.
Let’s break it down.
Storage: peanuts. Yes, I know it costs more than a few $150 shucked hard drives from Best Buy thrown into a couple JBODs. But look,
they have 268M Premium customers. They claim to have 100M+ songs in their catalog. Conservatively at 4 minutes a track, compressed to FLAC we’re talking about less than 2 petabytes of data. That’s about 7MB per premium customer. Peanuts, even if you multiply by 1,000.
Devs: Peanuts. C’mon. All the work is already done. Supporting FLAC programmatically is easy. Any extra work you think it might need, divide by 268M.
CDN distribution. Ah, where the real costs lie. Or do they? I could not find the mean usage for Spotify customers. But sites I
saw put the average for North America at ~160 minutes per month (the highest) and < 100 minutes per month in Europe (the lowest). But Europe is also their biggest market. So let’s be conservative and split it, 130 minutes per day. At FLAC rates, that’s 688MB - 312MB (current 320kbps Vorbis) = +376MB per user per day.
Let’s multiply that by a year. 137GB. Boy, that seems like a lot! How much does it cost to distribute that worldwide through a big CDN network?
The honest truth is, I don’t know. Here’s what I do know. Spotify is one of the largest media streamers in the world. They have incredible bargaining power. Meanwhile, for smaller players doing media streaming, the
marginal cost goes down to as low as $2/TB. So at 137GB per person per year, at the unnegotiated rate for smaller users, that’s an additional $0.27 per customer
per year.
Now undoubtedly I’ve underestimated some things. Please use your unrivaled experience in the tech industry to tell me why my figures off by more than a factor of 10.
(
Brandolini’s law strikes again)
Also Spotify offers thing services in their products that other streaming services does not offer.
I know! And I’m paying for it!
Also, this whole Joe Rogan and military talk is too woke for some people, myself included. (1) Joe Rogan gets what he gets, if he didn't deserved it, he wouldn't get it. He's getting what he gets because Spotify feels it's a good business decision (2) you can take your political activism to another forum that talks politics.
Re-read what I wrote and tell me where and how I injected politics into the discussion. Then re-read what you wrote and tell me how you didn’t.
While you’re at it, you can give me your definition of woke because I know three working definitions in common use and I’m none of them. Thanks to a contentious Facebook group with alumni and current students at my old school, I was “anti-woke” in 2013, long before the term had escaped containment and became a byword in certain circles for “everything I don’t like.” (That’s the third of three definitions, politely expressed.)