The total gross-margin dollars a customer is expected to leave behind across their entire relationship with you in LTV (Lifetime Value), shrinking as churn rises and stretching out as they stick around.
Spotify's premium subscribers generate roughly $11 of monthly revenue at a gross margin near 30%, leaving about $3.30 in monthly contribution. At reported churn near 4% per month, that implies an LTV in the high two-digit dollars per subscriber, the math that explains why Spotify cannot pay back high CAC channels like Super Bowl ads.
