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Lewis: Yeah, even for that increase
Right. Premium subscriptions represent about 90% of revenue, which is pretty telling. If you look at that user base breakdown, 71 out of 160 million. It's less than Nike Air Max 2017 Dámské half, but they're carrying 90% of revenue.

Lewis: And something encouraging, also in the financials, is when you look at what's going on with gross margin. It's currently at 21%, up from 12% two years ago. Some of that is that mix of profitability we were www.rostfriaarbeten.setalking about, where even though most of the money was being made off of Premium users, the fact that Free users were losing money for the business obviously weighed on what was going on in the gross margin side. Now that they are gross margin positive on the Free side, that's obviously going to help a little bit, too.

Niu: Right. Adidas EQT Support ADV Mujer The royalty cost of the record labels is really the big piece that we're talking about here. That was about 80% of revenue in 2017. These costs are enormous, which is really tough to squeeze out any type of profitability, because you don't have a whole Nike Air Max 95 Donne Nero lot of money left over to cover all your operating expenses.

Lewis: Yeah, even for that increase in gross margin that we're seeing, that still means that licensing costs and royalty payments are eating up about 80% of the top line. That means that a lot of the cost savings, even as they renegotiate deals and get more favorable terms, Nike Air Presto Dam aren't really coming down to the bottom line, because as a percentage of sales, you look at the research and development costs, their sales and marketing, their general expenses, all of those were up in 2017.

Niu: Right. That's what's so hard about Adidas Superstar Mujer this industry. The cost structures are just not very favorable to these services, whereas the record labels, they have a very strong bargaining position in there.

Lewis: And trying to paint a picture for what profitability might look like for this business is Nike Air Presto Dámské kind of tough. We saw an operating loss for them in 2017. Then, on top of that, they had a huge line item hit with their finance costs, which took them even further into the red and took them to €1.2 billion in losses for 2017. Most of that is related to this very Adidas NMD Mujer complex structure of the company's debt and convertible notes. Evan,Nike Air Max Tavas Dam  you have some experience with that. Do you want to try to give a quick explanation there?

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