According to consequence.net, Spotify has reached their largest quarterly profit in history during the second quarter of 2024. According to Music Business Worldwide, Spotify reported a total quarterly revenue of $4.098 billion in the second quarter of 2024, by achieving a record high operating profit of $286.4 million.
Spotify attributed their success to the addition of seven million new premium subscribers and five million new ad supported subscribers. As of today, the streaming service has combined 626 premium and ad supported users across their platform. Per Music Business Worldwide, Spotfiy’s operating income reflected ther “lower personnel and related costs,” which was the result of the company’s decision to slash 17 percent of their global workforce in December 2023.
News of Spotify’s record profits will add fuel to the criticism the streaming platform has received from artists and creatives over lack of royalties and other payout concerns. The Mechanical Licensing Collective recently filed an alleged lawsuit against Spotify over allegations that the the company allegedly cheated songwriters out of $150 million of royalties by allegedly reclassifying certain Premium services as alleged bundles.
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