The hugely popular online music database Spotify has seen a fall in profits from £21mil in 2011 to £10.1mil in 2012. The company are claiming that this is mainly due to a decline in subscriptions revenue.
A spokesperson from Spotify said “…during 2012 Spotify saw dramatically increased revenues while maintaining a free to paid conversion rate of well over 20% – unheard of for a freemium business.”
I’m a member who chops and changes my membership – one month I have a premium account and the next it’s back to free music with adverts – depending on my funds. Maybe there are many of my kind out there who don’t want to commit to a single membership pattern and therefore created a loss in revenue.
Spotify’s spokesperson also said “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 industry as a whole.”
After the hoo-ha of music moguls kicking up a fuss about Spotify taking money away from the artists, Spotify state that their maim goal is to ensure artists are properly compensated for the use of their music!