Thursday, 9 October 2014

Spotify UK in profit , Last.FM still in the red, SoundCloud losses grow

Spotify's UK business went into profit last year, Spotify Ltd's revenues rose 41.8% last year, from £92.6 million to £131.4 million, meaning that the company made £2.6 million in net profit, compared to a net loss of £11 million in 2012, according to figures filed with Companies House and seen by The Guardian. Over 70% of that revenue is paid out to music rights owners (labels and publishers).

Spotfiy also announced that British acts 'over achieved' on Spotify. the BPI confirmed that British acts were selling 1 in 8 of all CDs and downloads worldwide but British talent over-indexes to an even greater degree on Spotify, where British artists now make up an incredible one-fifth of all tracks currently streamed on Spotify worldwide. has filed its latest financial figures with Companies House, which show that the music data company continues to make losses, according to The Guardian. However, although revenues fell by more than 20% in 2013, the company has halved the losses made the previous year. In its last financial year, reportedly made £4.92 million in revenues - a drop of 22.8%. Largely this came from advertising income, with a small amount from affiliate sales and £1 million in subscriptions. Only EU countries (not including the UK) saw a rise in revenues, which almost doubled from £740,659 to £1.12 million. The UK and US both saw significant drops (45.8% and 22.8% respectively), while the rest of the world saw a 60% decrease in revenues to £288,859.

And SoundCloud's bid to become a licensed music service is faltering, according to the Financial Times, as major record companies refuse to sign up to the terms (which apparently include equity) on offer. SoundCloud's revenues were up in 2013, but so were its losses, according to a annual filing by the digital firm. SoundCloud's revenues were up from 8 million euros in 2012 to 11.2 million in 2013. But in the same period losses more or less doubled, from 12.4 million euros in 2012 to 23.1 million in 2013.

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