I just read that Spotify has never been profitable – yet they are the #1 music streaming service internationally for music. How can they continue to operate like this?
In: Economics
It’t a long time investment with hopes of eventually making money.
When Norwegian construction company Veidecke wanted to branch out to Sweden they did so with a plan to lose about 300 million kr (roughly $30 million) on purpose for 3 years to establish them self in the Swedish market. They knowingly offered to do contracts (jobs) for far less than the competition so that they’d get the opportunity to show that the can do good work. After a few years they were established in the market and started making profit.
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