Spotify's revenue increases significantly in 2013, but losses remain

Spotify's revenue increases significantly in 2013, but losses remain
Spotify saw its revenue grow significantly in 2013, but the large losses remain as the company continues to iron out a business model that will make it profitable.

Overall, revenue grew 74 percent to 746.86 million last year from 430.28 million in 2012. Losses fell but were still large, with a net loss of 57.8 million compared to 86.7 million in 2012.



91 percent of the company's revenue comes from paying subscribers, most of which pay $10 per month for unlimited, ad-free streaming and mobile access. The rest comes from advertising. Spotify cited "substantial investments" into its international expansion, product development and new employees as the main reasons for the large loss.

Indeed, Spotify expanded to 32 more markets in 2013, helping to increase its active users by almost double over 2012.

Also of note, Spotify says it pays a full 70 percent of revenue to music-license holders, paying between $0.006 and $0.0084 per stream.

Source:
WSJ


Written by: Andre Yoskowitz @ 28 Nov 2014 0:10
Tags
Spotify Music Streaming corporate earnings
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  • 1 comment
  • hearme0

    Truly dumbfounding!!

    1.12.2014 17:14 #1

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