Andre Yoskowitz
11 Nov 2012 21:46
According to TC, Spotify's revenue could jump to $500 million this year thanks to strong growth all around.
Last year, the company lost $60 million on revenue of $244 million thanks to the expenses of expanding to new nations and renewing some streaming music licenses.
If accurate, sources claim revenue will grow to half a billion, but the company is expected to post a small net loss again.
Spotify, in its licensing deal with the labels, will have to pay either $200 million annually or 75 percent of revenue, which will be above the standard payment for the first time ever for the company. $100 million is spent on engineering, marketing, sales and all other operating costs, leaving the company with the anticipated loss of $40 million.
The company did not comment on the figures, which are lower than their own $900 million revenue forecast.