This means that most of their database, server, storage, labor, and music playing costs go towards supporting the free users that make up the majority of their user base. If every user converted right now, they would have an additional $800M, resulting in a $200M net profit in the ideal situation where we forget about getting rid of the minimal ad revenue and where everyone is paying $10 a month with no family or student plans. I never paid for Spotify and I can listen to any music I want on my laptop.
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