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