Spotify revenue doubles, but losses widen to around $88 million

By Justin Kahn ยท 5 replies
Jul 31, 2013
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  1. Online music service Spotify doubled its revenue last year, but its international expansion is widening losses as well, to the tune od $88 million according to the company's latest financial statement.

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  2. St1ckM4n

    St1ckM4n TS Evangelist Posts: 2,922   +630

    "od" - typo first sentence.

    How does expansion make losses? Sure, there's an advertising push, but the huge amount of users waiting to sign up should make up for this?
  3. davislane1

    davislane1 TS Grand Inquisitor Posts: 4,741   +3,758

    Basically, the growth in their customer base was smaller than their growth in licensing fees. Expansion doesn't count for much net when it costs you substantially more to do business.
  4. windmill007

    windmill007 TS Rookie Posts: 308

    Hopefully they can start profiting soon. Hopefully the losses are due to expansion and not a flawed business model. At some point you have to be able to make money or it won't last. Spotify is the first music service I have ever paid for and I never bought mp3s.
  5. captaincranky

    captaincranky TechSpot Addict Posts: 13,038   +2,558

    And when they raise the price, (as it seems they will be forced to), will you be back complaining about it? 'Jus curious.
  6. What format did you buy in then? :confused:

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