Spotify turns up volume to make record profits (2024)

FAQs

Have Spotify ever made a profit? ›

Spotify's emergence in 2006 demonstrated that it was possible to monetise streaming in a way that was both legal and attractive to music lovers. Eighteen years on and Spotify has just turned its largest quarterly gross profit – more than a billion euros (£859 million) in the three months to the end of March.

Its main revenue source comes from users upgrading to a premium subscription. Spotify is a music streaming platform that gives users access to a large catalog of music. It uses a freemium revenue model that offers a basic, limited, ad-supported service for free and an unlimited premium service for a subscription fee.

Spotify provides audio-streaming services. The biggest share of the company's revenues comes from its Premium Service.

Spotify has announced record profits of over €1billion (£860m), following staff being laid off, subscription prices rising and costs being cut across the board.

What Is Spotify Technology's Debt? As you can see below, at the end of March 2024, Spotify Technology had €1.27b of debt, up from €1.16b a year ago.

Spotify dominates the music-streaming market, with nearly 600 million monthly active listeners and a 30% market share, but that hasn't translated into turning a profit for the Stockholm-based company.

Spotify has revolutionized how millions of people listen to music, podcasts, and audiobooks. It went public in a direct listing in early April 2018. Its share price stood at $149 at the end of its first day of trading. Spotify's co-founders, Daniel Ek and Martin Lorentzon, are the largest individual SPOT shareholders.

The estimated $131 million in royalties Taylor Swift's music earned from Spotify is 1.3% of $9.7 billion, so I'll assume she received 1.3% of all Spotify royalty payments. Taylor Swift is paid as both the composer and performer of her music, and also owns the master recordings of the “Taylor's Version” of her albums.

What are Spotify's main costs? The biggest cost in Spotify's books is the royalty fees paid to label companies and their artists. The amount paid is based on a percentage of the number of plays each song gets.

Spotify pays artists a certain amount for each stream, but the rate varies. It typically ranges from about $0.003 to $0.005 per stream. The exact amount can depend on the type of subscription you have (Premium or Free), where you are listening from, and the specific agreements Spotify has with artists or their labels​.

Which country uses Spotify the most? ›

The United States is responsible for the single largest Spotify market in the world. Even though North America does not have nearly as many Spotify users as Europe, the United States provides more Spotify users than any other country.

Taylor Swift is still the queen of Spotify, with over 81 million lead streams, putting her total earnings at over $327 million. This is ahead of the most-streamed male artist, Drake at 76 million streams and $304 million.

The cost of content is really expensive. If you're going to be an effective music streaming service, you really do need to have essentially all of the world's music, and so you have to pay to license that music. Nearly 70 cents of every dollar that Spotify makes from streaming music goes to music rights holders.

Since Spotify had achieved $12.6 billion in 2022, using that as my base, I estimate Spotify will grow its business to about $30 billion by 2027. I will also be less optimistic than management and forecast Spotify's 20% CAGR growth at the higher end of its growth timeline at the five-year mark.

Spotify uses the freemium business model and generates revenue through paid subscriptions and advertisem*nts. Users can choose from paid premium plans that suit the collective number of users and offer discounts.

The cost of content is really expensive. If you're going to be an effective music streaming service, you really do need to have essentially all of the world's music, and so you have to pay to license that music. Nearly 70 cents of every dollar that Spotify makes from streaming music goes to music rights holders.

Music streaming giant Spotify (NYSE: SPOT) is on track to achieve full-year profitability in 2024. The Swedish company marked its first profitable quarter in Q1 2024, recording net income (GAAP) of €197 million.

Key Facts. Netflix's $9.4 billion in first-quarter revenues and $5.28 profit per share were comfortably above consensus analyst estimates, with Netflix's top and bottom line marks both the best in its history.

Spotify Technology gross profit for the twelve months ending March 31, 2024 was $3.944B, a 25.14% increase year-over-year. Spotify Technology annual gross profit for 2023 was $3.677B, a 19.26% increase from 2022. Spotify Technology annual gross profit for 2022 was $3.083B, a 0.57% increase from 2021.