Thursday, August 1, 2013 12:49pm ET by  
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Spotify makes losses despite doubling revenue

Music streaming service Spotify has released its figures for 2012 and it was revealed that despite doubling revenue the company still made significant losses.

Billboard.com reports that it doubled its revenue last year to over $573 million (£376 million) when 2011's came in at $246.7 million (£162 million), but it also made a loss of $77.4 million (£51 million) up from the previous year's figure of $58.8 million (£39 million).

Spotify has made headlines recently after Radiohead frontman Thom Yorke hit out at the company for not paying royalties properly after he told press that artists make next to nothing from having their music included in the service.

A spokesperson for Spotify explained in a statement: "During 2012 Spotify saw dramatically increased revenues while maintaining a free to paid conversion rate of well over 20 per cent – 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."

 

 

 

 

Watch Yorke perform 'Ingenue' live below: