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Spotify subscription revenue up 200% in 2011

Tom Pakinkis
Spotify

Spotify's 2011 year end financial figures have been released, offering more numbers on top of those confirmed by the company in April.

The majority of Spotify’s 2011 revenue was drawn by just 8% of the streaming service’s userbase – namely, it’s subscribers.

Figures showed that Spotify had 32.8 million registered users and 2.6 million paying subscribers, suggesting 8% of the company’s customers brought 83.5% of its revenue.

The rest of the report outlined net revenue – which was reported in Sweden earlier this year and confirmed by CEO Daniel Ek - and the revenue yield from advertising and subscriptions.

Subscription revenue in 2011 saw a big increase of just under 200% going from 52.6 million Euros in 2010 to 156.9 million Euros. The net loss of the streaming company increased last year to 45.4 million Euros compared to 28.5 million in 2010.

The increase can be attributed largely to the company’s rapid international expansion and the losses have been financed by its owners, although the music service said it “cannot exclude the need or desire to raise more funds in the future." 

Overall revenue, on the other hand totaled 187.8 million Euros last year, an increase of just over 154% year-on-year, having been at 73.9 million Euros in 2010. 

The biggest contributor to the net revenue increase comes from subscriptions, which brought in 156.9 million Euros in revenue compared to 52.6 million in 2010 – a 198% jump.

An increase in advertising sales for the streaming service was not quite so dramatic. It stepped up from 21.1 million Euros in 2010 to 27.6 million in 2011.

Source: WSJ, Telegraph

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Tags: streaming, spotify, Digital

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