Spotify Lost £16.66 Million in 2009

Posted 11/22/2010 at 3:47pm | by Ryan Whitwam

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Users across Europe may love Spotify's free, ad-supported music streaming service, but if their 2009 numbers are any indication, they might not get to love it much longer. According to Spotify's own disclosure, the company lost £16.66 million in 2009. That comes from £11.32 million in revenue, and £18.82 million in costs. Add a dash of taxes, and you get a pretty hefty operating loss. 

Spotify clued us into how their earnings break down as well. They get cash from two sources: ads and subscriptions. In 2009, Spotify pulled in £4.51 million from advertisements, and £6.81 million from subscriptions. Only 3.57% of Spotify's users bought into a paid subscription in 2009; a rate that may not be sustainable.

But how has Spotify been doing in 2010? Well, they haven't let that cat out of the bag yet. Although, the company did respond to these numbers saying, "The groundwork laid in our launch year has been crucial to the significant achievements made in 2010." Taking bets, how will Spotify do come the end of 2010?