Long-loss-making streaming service Spotify is on the rise after more expensive subscriptions

NOS News•yesterday, 2:58 PM

Increasing subscription prices has not helped streaming service Spotify. The move seems to make Spotify slowly on its way to finally becoming a structurally profitable company.

The net profit for the past quarter amounted to 168 million euros, Spotify announced. The originally Swedish company reports that it expects to be profitable again in three months with 250 million euros.

Although Spotify made a loss in the last three months of last year, there was also a plus in the previous quarter.

Since its founding in 2006, profit has long been a rarity for Spotify, which is listed on the New York stock exchange. A year ago, the streaming service reaped the benefits of a major wave of layoffs. Subsequently, increased subscription price increases ensured a slow turnaround.

Because although users have to pay more, the subscriber base grew by almost 20 percent compared to the previous quarter, to now 615 million users. Just under 40 percent of these pay for a subscription, the rest also hear advertisements between the music and podcasts on Spotify.

The growth is mainly due to subscriptions for multiple users, so-called family subscriptions.