Royalties and costs send Spotify's losses spiralling to £16.6m
Tuesday 23 November 2010
Spotify, the music streaming business that provide listeners with an alternative to piracy, saw losses soar to £16.6m in its latest financial results.
Despite a rise in sales of advertising and subscriptions, the group reported that losses had spiralled in 2009, from £316,000 a year earlier. This was because of a huge rise in royalty payments and a hike in administration expenses. A spokeswoman said the company had focused on establishing the service and increasing the number of users last year.
"The groundwork laid in our launch year has been crucial to the significant achievements made in 2010. Further strengthening and expansion of the service remains our top priority," she added. The company is in the late stages of preparing to launch in the US.
Spotify offers free streaming for those willing to listen to advertisments, as well as a £9.99 a month premium product. Advertising sales rose from just over £2,000 in its first year, to £4.5m in 2009, the results revealed. Subscriptions rose from £380,000 to £6.8m, but only 250,000 of its 7 million users paid for the service.
Yet, the group plunged further into the red as the cost of sales – the royalties – rose from almost £410,000 to £18.8m. Administrative expenses rose from £284,000 to £8.2m.
As the number of employees has increased from three to 23, the company's wagebill has risen from £88,000 to just over £1m.
- 1 Bill Clinton portrait features Monica Lewinsky reference, artist admits
- 2 What happens to your body when you give up sugar?
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 Average penis size revealed: Scientists attempt to find what is 'normal' to reassure concerned men
Bill Clinton portrait features Monica Lewinsky reference, artist admits
Japanese island overrun with cats after population explodes
China's 'Inconvenient Truth': video exposing country’s smog crisis watched 100 million times
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...