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Music streaming: the impossible profitability

2023-01-31T19:17:54.746Z


Spotify, the global industry leader, will soon have half a billion users. Despite rapid growth, the service, born fifteen years ago, is widening its losses and must change its model.


In 2023, Spotify is expected to cross the half-billion user mark.

The world leader in audio streaming can be satisfied.

The year 2022 ended on a very good note.

Almost all indicators exceeded forecasts.

Spotify now totals 489 million monthly active users, 10 million more than expected and up 20% year-on-year.

It has a solid base of 205 million paying subscribers, ie three million more than expected, also growing by 14% over one year.

The Swedish giant saw its turnover increase by 21%, to 11.7 billion euros, and its gross margin pass the 25% mark.

However, Spotify encounters a major difficulty.

Despite a dazzling growth in its subscribers and several steps ahead of its competitors, such as Apple Music, Amazon Music or Deezer, the platform still cannot make money.

Read alsoSpotify opposes Apple again

In 2022, it has further widened its losses.

The hole in the accounts amounts to 430 million euros…

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Source: lefigaro

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