{"id":46630,"date":"2025-02-05T14:19:11","date_gmt":"2025-02-05T19:19:11","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=46630"},"modified":"2025-02-05T14:19:11","modified_gmt":"2025-02-05T19:19:11","slug":"spotify-profitable","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2025\/02\/05\/spotify-profitable\/","title":{"rendered":"Spotify Profitable"},"content":{"rendered":"

Ben Lovejoy<\/a>:<\/p>\n

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.<\/p>

[…]<\/p>

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<\/a> to sign up – avoiding Apple’s 30% cut.<\/p>

[…]<\/p>

It was never clear why Apple blocked this given that it appeared to be permissible under the company’s music entitlement<\/a>.<\/p><\/blockquote>\n\n

Todd Spangler<\/a>:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n\n

Jem Aswad<\/a> (via Hacker News<\/a>):<\/p>\n

Spotify<\/a> paid out $10 billion to the music industry in 2024 — some $1 billion more than last year<\/a>, 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<\/a>.<\/p>

[…]<\/p>

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.<\/p><\/blockquote>\n\n

Previously:<\/p>\n