Spotify Continues Growth, Reports 2020 Revenue Increase of 16.5%
Spotify reports growth in revenues for 2020
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Spotify’s latest filing gives a promising glimpse into their financial viability
Spotify, the Luxemborg-based technology and media giant, has officially filed its full report for 2020 (Form 20-F) with The U.S. Securities and Exchange Commission (SEC).
The report reveals some interesting tidbits about Spotify’s business and the users of their platform for the year ended December 31, 2020:
Highlights and Important Statistics in Spotify’s Report
- Spotify has paid out more than €21 billion ($25 million) in royalties to an assortment of record labels, music publishers, and other rights holders since inception of the company.
- The platform boasts over 70 million tracks and 2.2 million podcast titles.
- Spotify is available in 93 countries and territories.
- There are 345 million monthly active users. 155 million of those are Premium Subscribers.
- Annual revenue growth increased to €7.88bn ($9.25 bn), a 16.5% increase from €6.76bn ($8.2 bn) in 2019.
- However, operating loss in the calendar year of 2020 stood at €293m ($335m), an increase of four times that of 2019.
- Monthly active users streamed 92 billion hours of content in 2020, up 26% from 2019.
- An average of about 22.3 hours of content a month was consumed by each monthly active user.
- Recordings from UMG, Sony Music, WMG and independent music licensed through Merlin accounted for over 78% of Spotify streams.
- Spotify entered into a number of business combinations with a variety of companies (The Ringer, Megaphone, Anchor, Gimlet, Parcast) with the intent of increasing their market share and monetization as a podcast provider.
- Spotify has estimated future minimum guarantee agreements for music and podcasts of €3.6bn.
What Does the Report Say About Spotify’s Future?
The report solidifies Spotify’s claim as the “most popular global audio streaming subscription service”.
Despite the rising operating losses which completely ate through their gross profit, Spotify can look ahead with bold optimism.
The platform continues its surging growth in revenue and content and its share price has ballooned an incredible 106% since early 2020.
Kevin James has over 20 years of experience in the entertainment industry in various facets. He has worked as a recording artist, songwriter, producer, on-air radio personality, background actor and film director. Kevin is a Member of the National Writer's Union.