When Spotify launched its music streaming service in several European countries on October 7, 2008, few people would have thought that this obscure Stockholm-based startup would eventually grow into the world’s most popular music platform. Back then, music streaming was still in its infancy, accounting for a small fraction of global music revenues, but eventually, Spotify’s early bet on streaming would pay off.
As the following chart illustrates, it took a while for Spotify to really take off. By the time of its fifth birthday in 2013, the streaming pioneer had roughly 30 million active users and 8 million premium subscribers. Since then, Spotify's active user and premium subscriber numbers have continued to grow steadily though, reaching 345 and 155 million, respectively, by the end of 2020.
For the year ended December 31, 2020, the company that went public in 2018 and is currently valued at almost $70 billion reported a net loss of €581 million on €7.88 billion in revenue, most of which coming from premium subscriptions.