Spotify doubles revenue even at high copyright cost

The online music service Spotify, which is due to arrive in Brazil in September, more than doubled its revenues in 2012, reaching 435 million euros (US $ 577 million). The company also doubled its number of users, according to the company.

The Stockholm-based company, which provides free music on demand or paid for by customers, had a net loss of 58.7 million euros, compared to 45.4 million euros of loss recorded in 2011, and a revenue of 190 million euros.

Spotify, founded in 2006 by Swedes Daniel Ek and Martin Lorentzon, has deals with record labels and pays about 70% of its revenues to copyright holders.

The company, which has no publicly traded shares, has more than 20 million active users and 5 million subscribers.

The streaming and on-demand music market has become popular with the explosion of mobility, but companies like Spotify and Pandora – which have nearly 68 million active users – are struggling to profit due to copyright costs.

The information is Reuters.

Music Streaming result Spotify

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