The suffering economy continues to harm the music industry as Spotify counts their total loss over the past two years to $100 million. Read on for more details.
Spotify has become increasingly popular, with fans of the streaming device advertising it over social networks such as Facebook. But even with the large fan base, the monetary benefits are still lacking. According to Prefix Magazine, there were “32.8 million users, with 10 million being labeled as “active” and 3 million actually as paying subscribers” at the end of 2011. A recent update has been released that Spotify has reached 4 million paying customers, but that growth still doesn’t seem sufficient for the company’s well being.
Daniel Ek, the CEO of Spotify, remains optimistic for the continued growth of the company:
“The question of when we’ll be profitable actually feels irrelevant. Our focus is all on growth. That is priority one, two, three, four and five. But of course we expect to make a profit in the long run.”
On Tuesday, August 21, the company announced the expansion to Canada, South America and Asia. With the focus being primarily on growth, the company is taking steps in the right direction. With revenue not being the main concern, it seems that Spotify will become more globally accepted. Maybe at that point, the numbers will be more pleasant.