Spotify Technology S.A., a Luxembourg-based audio-streaming subscription service, has its operational base in Stockholm, Sweden. It primarily generates revenue through two channels: Premium Services and Ad-Supported Services that reach roughly 184 locations worldwide. As of the end of 2023, 602 million monthly active users and 236 million Premium Subscribers were recorded on its versatile platform.
Despite stiff competition from top players like Apple Inc., Amazon.com Inc., and Google's parent company Alphabet Inc., Spotify maintains its unique position by not having any devices where its services come preloaded. It caters its services to a massive audience via its two core segments: Premium Services and Ad-Supported Services.
Although a foreign entity, Spotify discloses financial statements to the U.S. Securities and Exchange Commission (SEC), following the International Financial Reporting Standards (IFRS) specified by the International Accounting Standards Board (IASB), rather than the General Accepted Accounting Principles (GAAP).
In the fiscal year concluding on Dec. 31, 2023, Spotify declared a net loss of €532 million. Despite this, annual revenue escalated by 13% to reach €13.25 billion. A significant portion of this revenue came from the U.S, the U.K, and Luxembourg, contributing about 49% to the total figure.
Spotify’s Premium Services sector reported revenue of €11.57 billion in FY 2023, a 12.83% spike from the previous year, accounting for nearly 87% of total revenue. Whereas, the Ad-Supported Services segment witnessed a 13.89% year-on-year increase, generating €1.68 billion in FY 2023 and contributing more than 12% of the overall revenue.
Spotify, established in 2008, boasts a vast collection of 100 million music tracks, 6 million podcast titles, and 350,000 audiobooks. In 2024, they funded $50,000 in scholarships for students at North Carolina A&T State University interested in audio media careers.
Spotify Technology S.A. marked its public advent on Apr. 3, 2018, through a direct listing on the New York Stock Exchange (NYSE). It has offices spread across North America, Europe, Asia, Latin America, the Middle East, and Africa. The Premium service is priced at $11.99 per month in the U.S., as it continues to be a dominant player in the audio streaming sector.