Spotify lost US$194 million last year

Streaming music service Spotify has lost US$194 million in 2015, which is considered the biggest loss for the company. But it’s not all bad news for them as that is just a bit over what they lost in 2015 and their overall revenue rose to US$2.18 billion. This means it has been able to slow its losses while boosting revenue, a development Spotify needs as players like Apple and Alphabet (Google’s parent company) entered the streaming service market.

It is looking good for them but there are still some areas for concern, according to Jan Dawson, chief analyst at Jackdaw Research. He emailed Mashable saying that content costs for Spotify are still quite high. They send about 80 percent of its revenue to the recording industry. And they are still incurring losses. “Their operating and net losses were both bigger in 2015 than 2015, and that’s a bad sign for future profitability,” Dawson said. And they are spending rather aggressively on things like staffing, public relations, and consultants.

Source: Mashable