Tuesday, October 11, 2011

Spotify Loses $42 Million On Licensing Costs

Spotify's 2010 financial statement, via 
musically.com and Companies House

UPDATE - Spotify has provided an official statement 
on the issue of its 2010 financial results:

“Since its launch in late 2008, Spotify has grown faster and become more popular than any other music subscription service of its kind, globally. Looking at financial results of individual markets in which Spotify operates is clearly not representative of the business as a whole.

“In 2010, we continued to grow our European user base, adding hundreds of thousands of paying subscribers, now representing a ratio of paid subscribers to active free users of over 15%, which is phenomenal for any “freemium” business. Product development remained a priority in 2010, with ongoing investment in innovation to offer our users the best music service possible and the biggest upgrade to Spotify since launch, including social features and the ability to combine local files with our own library of millions of tracks. We continued to invest in international growth, laying the foundations for new market launches, most recently launching in the US in July of this year.”
At first glance, Spotify should be doing great. It quickly boosted its active monthly users by a million after plugging itself into Facebook last month, and according to its latest financial figures, revenues increased five-fold to £63.2 million ($99 million) last year.        More