I have no idea why this is newsworthy. Epic’s own 2019 documents and testimony in the Apple trial showed that the company did not expect the store to be profitable until 2024 or even 2027. The strategy of heavy investment and operating at a loss to turn a profit later worked for Spotify, Netflix, Microsoft, and many others. Even this week, there are headlines like “Elon Musk Says SpaceX’s Starlink Achieves Breakeven Cash Flow”.
I have no idea why this is newsworthy. Epic’s own 2019 documents and testimony in the Apple trial showed that the company did not expect the store to be profitable until 2024 or even 2027. The strategy of heavy investment and operating at a loss to turn a profit later worked for Spotify, Netflix, Microsoft, and many others. Even this week, there are headlines like “Elon Musk Says SpaceX’s Starlink Achieves Breakeven Cash Flow”.
But all the other companies had in mind something else besides “gotta beat the other guys” and actually brought something to the table.
Spotify has never turned a profit, at least not yearly.
That could be true, making it an even stronger argument.