Spotify’s revenue and losses both increase in 2015
In the ten years since its founding, Swedish streaming service Spotify has yet to turn a profit. The company does continue to grow, however, as a report from the Wall Street Journal says the site saw its gross revenue grow from €1.08 billion in 2014 to €1.95 billion in 2015 — a gargantuan increase of 81%. Spotify’s net loss, however, also increased — the site’s 2014 losses of €162.3 million rose 6.7% to €173.1 million in 2015.
The streaming service is in no present danger of going under, as it is pursuing a long-term strategy reliant on spending outside investors’ money to increase its international presence, which the company believes will lead to “substantial revenues.” Spotify said that increases in royalties to artists and labels were partially responsible for the increased loss in 2015. Still, the company posted increased revenue from paid subscriptions and advertising, with subscriptions breaking the €1 billion mark, growing from €978.6 million to €1.74 billion, and advertising almost doubling from €98.8 million to €195.8 million.
This report comes after Spotify raised $1 billion to combat the competition from other streaming services, such as Apple Music and SoundCloud, which recently launched its own paid subscription service.