Final Answer:
In 2017, Spotify reported a gross profit of:
C) 15% for their ad-supported subscribers.
Step-by-step explanation:
Spotify reported a gross profit percentage of 15% for their ad-supported subscribers in 2017. This metric represents the portion of revenue remaining after deducting the direct costs associated with providing services to ad-supported users. The calculation involves dividing the gross profit by the revenue and multiplying the result by 100 to express it as a percentage, providing insights into the profitability of the ad-supported subscription model during that specific period.
The gross profit percentage is a key financial indicator that reflects the efficiency of operations and the ability to generate profits from the ad-supported segment of Spotify's user base. In this context, a 15% gross profit indicates that Spotify retained 15% of its revenue as profit after covering the direct costs of delivering services to ad-supported subscribers. This financial performance metric is essential for investors, analysts, and stakeholders to evaluate the company's profitability and make informed decisions about its financial health and market positioning.
In conclusion, the reported 15% gross profit for ad-supported subscribers in 2017 highlights the financial performance of Spotify's ad-supported model during that period. This figure is a crucial aspect of financial analysis, providing insights into the company's ability to effectively monetize its ad-supported user base and sustain profitability in a competitive digital music streaming landscape.