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Business News Digital
Spotify revenues and losses up last year
By Chris Cooke | Published on Monday 11 May 2015
Spotify saw both revenues and losses rise last year, which is no surprise really, given we knew the monies it pays into the music industry shot up in 2014, but at the same time an aggressive growth strategy in a tight-profit-margin business is costly.
According to figures published by the Spotify parent company last week, revenues in 2014 were up 45% to 1.08 billion euros. As a result payouts to the music industry rose more or less the same amount to 882 million euros. But Spotify itself remains a loss-making business, with net losses up 190% year-on-year to 162 million euros.
Which, as we say, isn’t surprising given where the streaming service currently sits in its grand master plan. Though it’s a reminder that – while the founders and early investors in companies like Spotify may earn big when they eventually sell – for the time being the streaming sector remains a loss-making industry for the digital platforms.
