Spotify Profitable
Spotify achieved its first full year of profitability since launching in 2008. The company has previously had occasional profitable quarters, but consistently lost money each year.
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One profitability factor may have been Apple’s decision to allow Spotify to display pricing within the iOS app within Europe, and to direct users to the Spotify website to sign up – avoiding Apple’s 30% cut.
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It was never clear why Apple blocked this given that it appeared to be permissible under the company’s music entitlement.
There was only about a two-year window (from June 2014 to May 2016) during which Spotify Premium subs could opt to sign up and pay through the Apple App Store. Now [July 2023], Spotify is no longer letting those customers continue paying through Apple’s in-app purchases.
Jem Aswad (via Hacker News):
Spotify paid out $10 billion to the music industry in 2024 — some $1 billion more than last year, the previous record — making its total around $60 billion since it was founded in 2006. The company made the announcement in a blog post Tuesday morning.
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In 2023, the company said it pays out nearly 70% of every dollar it generates from music back to the industry, generating its music revenue from two sources: subscription fees from its Premium platform paying subscribers, and fees from advertisings on music on its Free tier.
Previously:
- Spotify Connect Can No Longer Use iPhone Volume Buttons
- EU Pricing Information in Spotify App
- Spotify Anti-Steering Stonewalling
- EU Fines Apple $2 Billion Over Anti-Steering Rules
- Apple Rejects Spotify Update That E-mails External Purchase Info
- Spotify: Time to Play Fair
