20
Jun
17

Spotify Earnings: Growth Comes At A Cost

An excellent analysis by Mark Mulligan on Spotify’s economic fortune.

Music Industry Blog

spotify metrics

Spotify has published its much anticipated 2016 revenues. Because the company is under so much analytical scrutiny, there is little that is particularly surprising but there is still plenty we can learn from the results:

  • Growth maintains momentum: Spotify recorded revenues of €2.9 billion in 2016, up 51% from €1.9 billion in 2015. Although that was a lower growth rate in % terms (80% for 14/15), it was a bigger net add in revenue terms (€989 million net new revenue in 2016 compared to €863 million in 2015). Spotify still has some way to go before it challenges Netflix’s $8.2 billion streaming revenue, but it is making clear progress.
  • Spotify is getting ready for public reporting: The 2016 accounts featured heavy restating of previous year figures and many line items from last year’s accounts were no longer reported. All of which points to an organization getting its reporting structures in…

View original post 890 more words

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2 Responses to “Spotify Earnings: Growth Comes At A Cost”


  1. 1 Victor Ginsburgh
    July 13, 2017 at 10:18 am

    Dear Peter, I just received your book on the economics of music; it must be one of the first
    existing, if not the first
    Congratulations
    victor

    • 2 Peter Tschmuck
      July 24, 2017 at 7:53 pm

      Dear Victor, thank you for your kind words and it is of course the first textbook on the economics of the music business. Hope it will be useful for many students and teachers.


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