Spotify’s revenue in 2010 grew some 458 percent, according to public filings in Britain. The company financials were first reported by New York Times. The company’s subscription business model brought in some $71 million while advertising generated $28 million. Despite the growing revenue, the company invested heavily into expansion and development (not to mention artist earnings) – losses for the year were $42 million, up from $26 million in 2009.
Mind you, these figures are for 2010. The company has more than doubled subscribing customers from 2010, when it had some 750 000 paying users at year end. In July, Daniel Ek, co-founder and CEO of the company stated that they had some 1.6 million paying users. Just a few weeks ago the figure was already around 2 million.
Therefore it’s quite safe to say the amount of revenue it has generated this year will rise heavily again, compared to 2010 figures. Despite high revenues, it is still unclear how much of the money the company paid out in royalties to artists – something that has been an issue under debate ever since the company launched.