With $250 million in new capital, the company is planning a big expansion — and its competitors should worry:
Spotify’s investors see a different picture — one in which loss-leader products inevitably are neglected, and the team that creates the best product wins. (Netflix has notably outlasted an endless parade of rival video services built by Blockbuster, Walmart, and others.) Most Americans still download their music, but at a declining rate. If the subscription access model becomes the dominant way of listening to music, Spotify will be positioned to reap the rewards — and potentially even stay independent.