Spotify's issues and costs are royalty payments. Of the €567 million increase in cost of revenue for the Nine months ended September 30, 2023, higher royalty costs were €534 million of that total. (~94%) [1] This delta is vs 7,159 total cost of revenue on 9,576 of revenue (€millions).[1, pg4] From looking at the rest of the report, most other cost of revenue contributors are minor (5 here, 10 there).
In the total category, R&D (1,257), S&M (1,101), G&A (430). R&D trending up, possibly plateauing, S&M, G&A trending down. [1, pg4] All relatively minor compared to 7,159. (<=1/6)
R&D increased as a % of revenue YOY. I think the increased cost of revenue is part of the story, the other being salaries and benefits rolling up to R&D
The R&D expense is fully within their control, while things are a bit more complex with licensing costs.
In the total category, R&D (1,257), S&M (1,101), G&A (430). R&D trending up, possibly plateauing, S&M, G&A trending down. [1, pg4] All relatively minor compared to 7,159. (<=1/6)
[1] pg 36, Spotify 2023 Financial Report, "Spotify Technology S.A.", FORM 6-K, October, 2023 - https://s29.q4cdn.com/175625835/files/doc_financials/2023/q3...