Spotify's Losses Widen Despite Revenue Hike
With more than 50 million subscribers, roughly 100 million users and $3+ billion in annual revenue, Spotify is the undisputed leader in the booming music streaming market. And yet, a look at the company’s latest results leads to one question: will music streaming ever be a profitable business?
According to leaked figures first reported by The Information, Spotify generated €2.9 billion ($3.2 billion) in revenue last year, up 49 percent compared to 2015. However, the company’s costs piled up just as quickly, leading to a steep increase in operating losses. It’s a problem that all streaming providers face and one that might eventually give Apple a competitive edge over Spotify and its peers: Apple has a hugely profitable hardware business and billions of dollars to spend. As long as Apple Music supports hardware sales and helps to lock users into the Apple ecosystem, it probably doesn’t matter if it’s profitable. Companies such as Spotify will eventually have to figure out a way to keep royalty costs at bay in order to make music streaming a profitable and sustainable business.
Spotify is currently valued at $13 billion and is reportedly planning to go public later this year or early 2018 through a direct listing at NYSE.
- Share of paid subscriptions for music streaming services in Finland 2016, by ageShare of paid subscriptions for music streaming services in Finland 2016, by age
- Music streaming revenue worldwide 2010-2015, by typeMusic streaming revenue worldwide 2010-2015, by type
- Subscription music streaming: retail value of sales in the United Kingdom 2009-2015Subscription music streaming: retail value of sales in the United Kingdom 2009-2015
- Global revenue of the music industry 2002-2016Global revenue of the music industry 2002-2016
- Streaming music subscribers worldwide 2010-2020Streaming music subscribers worldwide 2010-2020
- Leading online social platforms based on reach in the Netherlands 2016Leading online social platforms based on reach in the Netherlands 2016
- Ranking of media companies in the Nordic countries 2015, by revenueRanking of media companies in the Nordic countries 2015, by revenue
- Ranking of media companies in Sweden 2015, by revenueRanking of media companies in Sweden 2015, by revenue
- Who may use the "Chart of the Day"?
- The Statista "Chart of the Day", made available under the Creative Commons License CC BY-ND 3.0, may be used and displayed without charge by all commercial and non-commercial websites. Use is, however, only permitted with proper attribution to Statista. When publishing one of these graphics, please include a backlink to the respective infographic URL.
- Which topics are covered by the "Chart of the Day"?
- The Statista "Chart of the Day" currently focuses on two sectors: "Media and Technology", updated daily and featuring the latest statistics from the media, internet, telecommunications and consumer electronics industries; and "Economy and Society", which current data from the United States and around the world relating to economic and political issues as well as sports and entertainment.
- Can Statista create customized charts?
Absolutely! For information on tailor-made and sector-specific
Charts of the Day, please contact Robin Hüdepohl