If the number of Spotify users continues to increase, the streaming platform has so far had a lot of trouble making profits. Previously, the company managed to make profits in certain quarters. However, 2024 has been the first year since its creation, during which Spotify has generated annual profit.
“I am very enthusiastic about the idea of 2025 and I feel very well in our position, both as a product and as a company”said Daniel Ek, founder and CEO of Spotify. “We will continue to make bets that will have a long -term impact, by increasing our speed while maintaining the levels of efficiency we have reached last year.”
In the last quarter of 2024, the operating profit reached a record of 477 million euros, which brought the company’s annual operating profit to 1.4 billion euros, a first. The income of the last quarter of 2024 was 4.242 billion euros, up 16 % in annual shift.
Good growth in the number of users
Spotify indicates that in the last quarter, he exceeded his objectives on key indicators. And the number of active users per month experienced growth of 12 % to reach 675 million users, while the number of paying subscribers increased by 11 %, reaching 263 million users.
The video podcast format also makes a box. According to Spotify, 330,000 episodes are already available in video format for users. And 270 million users have already consumed video content on the streaming service.
Regarding the remuneration of artists, Spotify indicates that it paid $ 10 billion to the music industry, in 2024. And since its creation, payments have reached a total of almost 60 billion dollars .
- Spotify announces a record operating result in the last quarter of 2024 and, for the first time, the company was profitable in an entire year
- The number of platform users, as well as the number of premium subscribers, are also up
- And the Spotify video podcast format is a box
- In 2024, Spotify paid $ 10 billion to the music industry and the total paid since the creation of the platform reached almost 60 billion dollars
