Strong steps taken by Western music companies to cease operations in Russia will have a big impact on the country but result in little damage to the global market.
the company’s decision to shut down operations in Russia will result in about 1.5 million lapsed subscribers. By’s estimate, those 1.5 million subscriptions are worth a maximum of $40 million of revenue and $12 million of gross margin per year — negligible amounts for a company that could reach $13 billion of revenue in 2022.
Global businesses such as Spotify make most of their money from developed markets in North America and Western Europe. At $2.26 per month, a 30% gross margin — meaning the remaining 70% is paid in royalties to rights holders — and a 3.75% monthly churn rate, a Premium subscription in Russia has a lifetime value of roughly $17.60, less than half the LTV for Spotify’s average global subscriber. That would put the 1.5 million lapsed Russian subscriptions at a collective lifetime value of only $26.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Not all Western companies sever ties to Russia over UkraineCompanies from BP to Google are curtailing business in Russia due to the war in Ukraine. But some companies are staying, saying they have franchise owners or employees to consider or they don't want to punish Russians by taking away food or medicine.
Read more »
Western Union suspends operations in Russia and Belarus after Ukraine invasionIt adds to a growing number of financial, tech and retail companies leaving Russia over the war.
Read more »
Western Union Suspends Russia, Belarus OperationsWestern Union said Thursday that it is suspending its operations in Russia and Belarus
Read more »
Russia widens attack on Ukraine's cities, striking western airfields and DniproRussian forces launched multiple missile attacks on a wide range of targets across Ukraine in the early hours of Friday, striking airfields in the far west of the country and, for the first time, hitting the central city of Dnipro, to which Ukrainians from other embattled cities have fled.
Read more »
Not all Western companies sever ties to Russia over UkraineA shrinking number of well-known companies are still doing business in Russia even after hundreds of others have announced plans to curtail ties.
Read more »
In the only US state bordering Russia, Alaska governor says defenses are strongAlaska Gov. Mike Dunleavy told Fox News Digital its defenses are strong and its personnel are prepared for any type of belligerent behavior from Russia.
Read more »