updated 05:40 am EDT, Tue October 11, 2011
Spotify posts successive losses in its two years
Spotify saw its revenue jump 458% last year. However, the online ad-supported streaming music service still managed to record a second successive net loss, this time $41 million. The figures were based on when the company had just passed 1 million subscribers in 2010. It now has over 2 million paying customers with its expansion into the US this year.
Its 2010 financial results show that sales increased from £11.32 million in 2009 to £63.17 million ($98.3 million) in 2010. At the same time, the site, which largely relies on online advertising, saw its advertising revenue quadruple to £18.06 million ($28 million). However, where it came unstuck was in its administration costs, which tripled from 2009 to £23.7 million ($37 million) in 2010.
Spotify won't be publishing its 2011 figures until Q3 2012. The doubling of its subscriber base in the past year should help to narrow the difference between its operating costs and revenue. However, it is not know how much the expansion into the US market may have had on Spotify's bottom line. [via Hollywood Reporter]