Andre Yoskowitz
28 Nov 2014 0:10
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