Spotify UK has announced a £10.1m loss in 2012 due to a fall in subscription revenue, new figures have revealed.
The music streaming and subscription service posted the loss compared which comes after a profit of £21m in 2011.
Figures showed that revenue fell to £92.6m in 2012 from £96.5m a year earlier. Subscription revenues were in part behind the decline, falling from £72.4m to £64.7m year on year.
According to reports, the fall is due to a change in the way subscriptions are managed rather than a fall in the number of users.
Spotify’s advertising revenues increased from £8.1m to £9.1m.
The figures come after much debate of the merits of Spotify and other streaming services when it comes to rewarding the creators of music.
Thom Yorke and Nigel Godrich removed much of their music from the service earlier this year after claiming that Spotify was ‘bad for new music’.
Read CMU editor Andy Malt’s editorial from the latest issue of M analysing the streaming debate.
The music streaming and subscription service posted the loss compared which comes after a profit of £21m in 2011.
Figures showed that revenue fell to £92.6m in 2012 from £96.5m a year earlier. Subscription revenues were in part behind the decline, falling from £72.4m to £64.7m year on year.
According to reports, the fall is due to a change in the way subscriptions are managed rather than a fall in the number of users.
Spotify’s advertising revenues increased from £8.1m to £9.1m.
The figures come after much debate of the merits of Spotify and other streaming services when it comes to rewarding the creators of music.
Thom Yorke and Nigel Godrich removed much of their music from the service earlier this year after claiming that Spotify was ‘bad for new music’.
Read CMU editor Andy Malt’s editorial from the latest issue of M analysing the streaming debate.
