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Spotify’s UK revenues up 18% in 2015 despite slip in ad income

By | Published on Monday 17 October 2016

Spotify

The UK division of Spotify saw revenues climb last year, from £159 million in 2014 to £187 million in 2015, according to the latest Companies House filing by Spotify Ltd.

Subscriptions were behind all that growth, with ad income generated around the freemium version of Spotify down slightly, from £11.1 million to £10.8 million, confirming that for the market-leading streaming service, free remains a loss-leader marketing channel to upsell premium, especially in more mature markets.

Still, the UK business managed to log a profit for the year of just over £1.2 million, having made a similar sized loss in 2014.

Though, of course, worldwide the wider company continues to make big losses in no small part thanks to the costs of aggressive growth and the minimum guarantees it must pay the record companies and music publishers over and above the basic revenue share arrangement it has with the music industry.



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