Spotify Losses Mount Despite Bump in Revenue
The world leader in streaming continued to struggle in 2014, as the company’s overall losses mounted despite a 45 percent increase in revenue. According to a report issued last week, the Stockholm, Sweden-based company lost 165 million euros last year, compared to a 91 million euro loss in 2013. Overall revenue rose 45 percent to 1.1 billion euros, but failed to earn the company its first annual profit. A spokesman for Spotify explained the large loss on a series of moves aimed at expanding internationally, as well as an increase in staffing and product development costs. The news comes as the company is trying to “stop the bleeding,” so to speak, as artists including Taylor Swift, Adele and Kelly Clarkson have pulled their music from Spotify’s catalog in recent weeks.
