Spotify Subscriptions Soar
Good news for people who love streaming news this week, with Spotify giving some insight into its financial performance in 2015. The upshot is a rise in revenues due to a dramatic surge in mobile subscriptions, with income soaring by over 40% and the service making a pre-tax profit of £1.25m in the UK last year.
The company saw total UK revenues rise by 18% from £159m to £187.2m in 2015, fuelled by a 44% surge in subscription revenues, which jumped from £119m to £171m.
A statement released by Spotify said: “This increase can be attributed to the transition from desktop to mobile as today the majority of new users signing up for Spotify are mobile”.
However, ad revenues were down from £11m in 2014 to £10.8m. Subscription income accounts for over 90% of Spotify UK’s total revenues, with the remainder being generated from advertising.
In more sobering news, the service also revealed that Drake’s ‘One Dance’ is now the most streamed track in the history of Spotify, with over 880m streams, as reported by Music Week.
All of the excited chatter about Spotify buying Soundcloud has died down, at least for now. In related news, Amazon has launched a new three tiered streaming subscription service in the US, priced at $7.99 a month for Amazon Prime customers, which no doubt caused one Ek of a sleepless night over at Spotify HQ.
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