How Data And Mobile Apps Shape Spotify’s Quest For Profitability

Music Industry Blog

Spotify’s has announced the 2013 financial results for its global parent company. The headline is a -12% operating loss, down from a -19% loss in 2012. The numbers are in stark contrast to the small operating profits recently reported in Spotify’s UK and France subsidiaries. Both were able to do so because only a portion of Spotify’s costs reside in those businesses. This raises the interesting point of Spotify making efforts to report an operating profit where ever it possibly can to help build an evidence base that its model is sustainable. Which contrasts sharply with Pandora’s prolonged efforts to do what it can to not make a profit in order to help its rate lobby efforts.

Having spent the last few weeks knee deep in a client project exploring the profitability of digital music services I had a stronger than usual sense of ‘told you so’ when Spotify’s…

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