Spotify‘s net losses widened to €58.7m (£51.3m) in 2012, as it continued to expand and heavily market its service.
Revenues jumped from €190.4m (£166.3m) in 2011 to €434.7m (£379.7m) in 2012. Active users doubled to more than 20 million as more than 6 million subscribed to its premium tier.
But Spotify net loss grew to €58.7m (£51.3m), compared with €45.4m (£39.7) in 2011. Its cost of sales rose to €363m (£317.2m) in the year, increasing from €186m (£163m) in 2011.
Said a Spotify spokesperson: “During 2012 Spotify saw dramatically increased revenues while maintaining a free to paid conversion rate of well over 20% – unheard of for a freemium business, and a clear demonstration of the success of the business model.
“In 2012 the business focused on driving user growth, international expansion and product development, resulting in soaring user numbers and increased market penetration. Our key priority throughout 2013 and beyond remains bringing our unrivalled music experience to even more people while continuing to build for long-term growth – both for our company and for the music industry as a whole.”Music Business Worldwide
