"They tried to 'go for gold' in one huge grab, generating several huge headlines along the way. They should have learned from Facebook ("They trust me. Dumb fucks.") and only made small grabs to eventually reach their goal."
They tried to 'go for break-even' more like. Last year revenue grew by 45% to €1BN and net (not operating) losses grew by 190% to €162MM. Their total subscription revenue doesn't even cover royalty and distribution costs. Just how long do you think they will be around to make 'small grabs' when they lose 16 cents on every euro they earn and every added listener puts them in a worse position?
It amazes me the number of people who think Spotify is some amazing business innovation that will be the next Apple, Google or Facebook when it's actually shaping up to be the next Boo.com