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Spotify pre-tax loss jumped to £26.5m in 2010

Spotify

Music streaming service Spotify is still struggling to make money. Despite a huge rise in revenues last year, pre-tax losses jumped to £26.5m in 2010, according to accounts filed at Companies House.

Losses increased by 60 per cent from £16.6m in 2009 as the service struggles to cope with the licensing costs it has to pay the music industry, and a long-delayed US launch.

However, revenues rose to an impressive £63.16m in 2010, up from £11.32m the previous year. The bulk of this was from subscriptions, which brought in £45.07m last year, while advertising revenues were £18.06m.

"The group has ambitious growth plans and has signed license agreements with a number of US record label groups for the American. market."

Spotify claims it now has two million paying subscribers, and recently instigated a controversial tie-up with Facebook.

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Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.