Spotify Ltd. lost 539 million euros ($601 million) last year — its biggest loss yet — even as it added tens of million of customers, underscoring how difficult it will be for the owner of world’s largest paid streaming service to turn a profit.
Revenue jumped 52% to 2.93 billion euros in 2016, but the net loss more than doubled, according to documents filed in Luxembourg. Spotify also acknowledged an accounting error that understated losses in previous years.
Spotify has grown from 20 million subscribers to 50 million in less than two years, and now has more than 140 million people using the service between the free and paid options. The growth of Spotify has lifted sales across the entire music industry, reversing years of decline due to piracy and the transition from CDs to iTunes.
Source:: AdAge – Digital