Spotify has five times the number of users as Apple Music - but the company is still reporting greater net losses than it was in 2015.

In a blog post Brian Benedik, Spotify's Vice President and Global Head of Sales, said the streaming service has surpassed 140 million monthly active users globally.

To put that in perspective, it's five times greater than Apple Music's subscriber count - which currently stands at around 27 million - and approximately 46 times greater than Tidal's user-base. Amazon Music is linked to Amazon Prime, which as of late 2015 had 54 million members.

However, it's not all wine and roses at Spotify's headquarters. The company's revenues rose to approximately £2.6bn last year, but its operating losses rose to around £300m.

Spotify reported a net loss of around £470m, more than double the 2015 amount.

It's possible new features like hi-res music or more exclusive songs will give the company a boost in revenue, but it may be difficult to reconcile an increase in profits with the company's statement that music services aren't paying their artists enough.

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Comments

chebby's picture

The maths don't stack up. 140

The maths don't stack up. 140 million 'active users' should yield $16.8 billion per year turnover (assuming $10 per member per month) and not the $2.6 billion given in the article.

It suggests (leaving advertising revenue to one side) that around 85 percent of those 'active users' are using Spotify for free and their 'activity' doesn't extend to paying.

Apple Music - with it's 'mere' 27 million subscribers - could be getting $3.24 billion per year (also assuming $10 per month per subscriber) with no advertisng revenue.

Maybe it's time for Spotify to go subscription-only, ditch the advertisers and lose the 'free tier' of users.