Spotify UK sees increased subscription revenue, but turns a loss
Spotify’s UK subsidiary published financial results for 2014. The filing with UK’s Companies House revealed 21% increase to revenue, totalling £159.1 million. Advertising revenue jumped to £11.1 million in 2014 from £10.2 million in 2013. Subscription revenue also increased, reaching £119.2 million over £92 million the year before.
It is interesting to observe the difference in earnings growth, between Spotify UK’s subscription revenue and its advertising income. Both grew in 2014 — ad revenue jumped nearly nine percent, and subscription earning spiked nearly 30%. And nominally, subscription money is ten times higher than advertising money. But ad-supported listening is not an afterthought in company thinking, across all its regions. Spotify developed a geo-targeted ad product with Triton Digital last December, and recently commissioned a large-scale study from TNS to measure how Spotify audiences in 15 European countries complement radio listening, to the potential benefit of advertisers. (NOTE: Les Hollander, Spotify’s Global Head of Audio Monetization, will present results of that study at RAIN Summit Europe, November 9 in London.)