Spotify is not like Netflix. Spotify is solely dependent on content creators who know exactly how profitable Spotify is at any time, and therefore how far they can be squeezed for royalties.<p>Netflix has two major advantages: (1) consumers are far more likely to accept a limited video catalog than they are a limited music catalog, and (2) Netflix has spent <i>a lot</i> of money developing their own content. Could Spotify do the same? Possibly, but probably more difficult to do so.<p>I think Spotify will in the future generate consistent low profits, much like a utility, and their valuation will likely reflect that.<p>So agree with you completely.