Episode 5: Banks care about growing earnings

In a recent TV series, the topic of whether Spotify controls streaming services and thereby controls the fate of musicians was hotly debated.Lawmakers pointed out at the hearing that musicians sign contracts with record companies, and record companies hold shares in Spotify, forming a seemingly tight chain of interests.In this structure, Spotify determines which musicians can be promoted, and the revenue from streaming downloads and services ultimately flows back to the record companies.This relationship has been questioned as a corporate alliance to manipulate prices and supply relationships.

However, judging from Spotify's own financial situation, the situation is not optimistic.Since its launch in 2008, the streaming media giant has yet to achieve profitability for a year, and its cumulative losses have reached 3.3 billion euros.In terms of costs, Spotify is under huge pressure from music copyright owners, and in terms of revenue, it faces fierce market competition.

Despite facing such severe financial pressure, Spotify executives, record company executives and employees appear to be living a luxurious life.In contrast, the vast number of musicians who provide content for the platform can only get a share of limited profits.This uneven distribution of interests has triggered public reflection on Spotify and the industry model behind it.

Interestingly, despite the storm of public opinion, Spotify was still able to successfully obtain a $1 billion loan from the bank.Banks' confidence in Spotify stems from its continued growth and potential earnings.This makes people think, in the eyes of financial capital, can corporate social responsibility and ethical issues really be offset by pure growth and earnings?

Spotify's predicament is not just that of one company, it is a microcosm of the power play of the entire music industry.In this game, multiple factors such as copyright, capital, market and technology are intertwined to form a complex network of interests.And at the center of this network, the fate of musicians always seems to be controlled by an invisible hand.