Spotify testing ad skipping for free users

InfidelGastro

Senior Member
Joined
May 21, 2018
Messages
955
#3
Although Spotify has millions of users and is very popular, it's not very profitable... Or as profitable as they would like rather.
 

Johnatan56

Honorary Master
Joined
Aug 23, 2013
Messages
21,533
#4
Although Spotify has millions of users and is very popular, it's not very profitable... Or as profitable as they would like rather.
Streaming music company Spotify went public on Tuesday, April 3, in what was one of the most closely watched IPOs of this year. The company has become the de facto music service of sorts for smartphone users, with about twice as many paid subscribers as Apple Music, the second largest provider. While the company has been recording robust revenue and subscriber growth (both for its premium and ad-supported tiers) over the last few years, its operating losses have also increased from levels of $235 million in 2015 to close to $378 million in 2017, as operating expenses grew faster than revenues. However, we expect the company to approach operating profitability at some point in 2019, as its gross margins improve amid a higher mix of premium subscribers and also due to a gradual decline in operating costs as a percentage of revenues.
https://www.forbes.com/sites/greatspeculations/2018/04/04/when-will-spotify-break-even/#6994bd604df7
And at least making an actual profit would be as profitable as they like. :p

EDIT: Do note that was due to until the end of 2016 they paid off all their debt.

From the above link though:
Spotify has been increasing its mix of paying subscribers, with 44% of users in 2017 paying for the service, up from 31% in 2015. We expect this trend to continue in 2018
 
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