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Spotify on course for $200m total revenue for H1 2012

Rhian Jones
Spotify

Spotify has reportedly made $200 million in total revenue over the first six months of 2012, and is on an annual run-rate that could put it around $500 million by January.

The company is projecting profit after cost-of-sales to be around $60 million and is expected to post an annual loss of roughly $40 million (after engineering, marketing, sales, licensing and operating costs), according to leaked information from TechCrunch.

The streaming services deal structure with record labels requires either a $200 million annual payment, or around 75% of total revenue (whichever is higher) - 2012 could be the first year that revenue is high enough for the percentage structure to kick in.

Overall revenue for 2011 totaled around $239 million, an increase of just over 154% year-on-year, having been at just under $94 million in 2010.

The company is currently working on a large new round of funding — more than $100 million at a $3.25 billion valuation, according to a Wall Street Journal article from yesterday.

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Tags: streaming, spotify, royalties, finance

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