Spotify revenues continue to increase as losses continue to deepen

Spotify’s revenues increased to a record £1.5 billion over the past 12 months, but its overall losses have widened by 7 per cent to €173 million in the same period.

The user base has notably grown while ad revenue has nearly doubled, with 89 million people actively using the service by the end of 2015. 28 million of which pay for premium accounts.

Despite this growth rate of 80 per cent, far surpassing 2014’s rate of 45 per cent, the streaming company is still not profitable.

As competition continues to heat up for the market leader, with the launch of Apple Music last year introducing a heavyweight rival, Spotify has made investment its main priority, reflected in the raising of $1 billion in convertible debt earlier this year in the face of strict conditions.

Royalties paid to artists are reportedly the main expense facing Spotify, yet despite this it has received criticism for paying unfair amounts from small and high profile artists alike, with Taylor Swift and Adele refusing permission to host some or all of their music to the streaming service.

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[Via: BBC]

Patrick Hinton is Mixmag's Digital Intern, follow him on Twitter