26 September 2012
Articles | News

News: Spotify

After year of growth, the music streaming service is nearing profitability

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SPOTIFY is close to reaching “operating profitability” after significantly narrowing its losses and increase its revenue.

Losses for the music streaming service fell to £2.1m from £26.5m over a 12-month period from December 2010 to 2011, reports Music Week.

Total revenues also grew to £95.5m over the same period from £63.2m in the prior year. Much of this growth was due to a £27.4m rise in subscription revenues. Guess those fucking annoying ads are finally starting to grind people down, eh.

“Taking this at face value, they [Spotify UK] are close to reaching operating profitability,” industry analyst Mark Mulligan told the FT. “It is good evidence that if you give the model time it can get to profitability.”

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