Spotify’s expensive free music

5 September 2012

Spotify’s operating losses doubled to €46.8 million in 2011 on expansion to the US. Still, with cash consumption half of operating losses, Spotify will be around for many years

Spotify has a profitable subscription business, while the losses of the advertising-supported tier could be trimmed to produce breakeven by a more stringent policy on usage

However, with usage uncapped in the US until July 2013 and the launch in Germany in 2012, Spotify’s losses on the freemium tier could well continue to swamp the profits of the subscription side for the near term

Recent reports