Each year, Spotify issues a 20-F annual report which reveals granular details about its financial performance.
Via information contained in these documents, we can obtain a picture of the firm’s overall profitability.
Below is a data visualization of Spotify’s ‘Cost of Revenues’ vs. its Revenues per year.
‘Cost Of Revenues’ is predominantly reflective of royalty payments made to music rightsholders.
It is defined within Spotify’s SEC filings as additionally covering the cost of podcast content assets (both produced and licensed), plus “credit card and payment processing fees for subscription revenue, advertising serving, advertising measurement, customer service, certain employee compensation and benefits, cloud computing, streaming, facility, and equipment costs”.
