Spotify has achieved a major milestone, reporting its first full year of profitability since its inception in 2008. The music streaming giant saw significant growth in both revenue and subscribers, driven by strategic pricing adjustments and the introduction of new features.
Spotify achieved its first full year of profitability since its launch in 2008, reporting net profits of €1.14 billion (approximately $1.17 billion) for 2024. This announcement came as part of Spotify 's fourth-quarter earnings release, marking a significant turnaround from the €532 million (around $549 million) in losses recorded in the previous year. Spotify had indicated in November that it was on track to achieve profitability.The company's total yearly revenue surged to €15.
6 billion (about $16.1 billion) from €13.2 billion (approximately $13.6 billion) in 2023. This growth was fueled, in part, by an 11 percent year-over-year increase in Premium subscribers, rising from 236 million to 263 million. Concurrently, the total number of monthly active users climbed 12 percent to 675 million. This subscriber growth is particularly impressive considering Spotify implemented two price hikes for its Premium subscriptions within an 11-month span. In July 2023, the price increased from $9.99 to $10.99 per month, marking the first US pricing adjustment since Spotify's launch in the country in 2011. This was followed by another increase to $11.99 per month in June 2024.During this period, Spotify introduced new features such as AI-powered playlists and audiobooks. However, there was no mention in today's report regarding the launch date of Spotify's long-anticipated lossless streaming option. 'I am very excited about 2025 and feel really good about where we are as both a product and as a business,' says Spotify CEO Daniel Ek. 'We will continue to place bets that will drive long-term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably, and deliver creativity to the world.
Spotify Profitability Streaming Subscribers Growth Revenue
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