Spotify's revenue doubles but losses continue

Spotify may have doubled their revenue during the financial year 2012, but the company continue to make losses, reports say.

As Music Week note, the music-streaming platform – recently criticised by the likes of Thom Yorke – saw an annual revenue increase of from €190.4m (£166.3m) in 2011 to €434.7m (£379.7m) in 2012.

But while its user base also doubled to more than 20 million, losses are still being made – with Spotify’s financial statement filed in Luxembourg yesterday showing that their deficit grew to €58.7m (£51.3m), as opposed to €45.4m (£39.7) the year prior.

This could be, in part, due to their royalty costs almost doubling too. Spotify paid out almost €363m (£317.2m) in 2012 to rightsholders.

A spokesman for the company told Music Week that they will continue to push on, quoted as saying: ”Our key priority throughout 2013 and beyond remains bringing our unrivalled music experience to even more people while continuing to build for long-term growth – both for our company and for the music industry as a whole.”