Proof Point
Leaked financials reveal Spotify’s losses continue to grow despite increases in revenue reaching $3.09 billion in 2016, with losses amounting to $430 million
Spotify Annual Global Revenue
2011 – 2016 (US$ billions)
| Note: | Figures converted to US$ using year’s average Euro to Dollar Exchange Rate |
Proof Point Findings
- Increasing Revenues – Spotify revenue increased from $250 million in 2011 to $3.09 billion in 2016, growing annually by 65.4%
- Unprofitable Operations – Despite revenue increase, Spotify continues to operate with increasing losses, reaching $430 million in 2016, raising questions about company’s ability to generate profit in future as it moves toward potential IPO
- Key Drivers – Include increasing paid subscriptions, growing consumer interest in on-demand music streaming services, Spotify’s continuous market expansion, successful collaborations with Internet service providers and wireless companies, and increasing royalty costs
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Accelerator |
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Market Disruption |
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Sector |
Media and Entertainment, Technology and Communications
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Source |
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Date Last Updated |
June 27, 2017
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