Spotify revenue 2013-2024
In 2024, music streaming service Spotify generated a revenue of 15.67 billion euros, reaching company’s first-ever full year of profitability. The majority of Spotify's revenues came from its premium subscribers rather than ad placements. Founded in Stockholm in 2005, the former start-up is now a market leader in the digital music streaming sector, competing alongside established companies such as Apple and their streaming service Apple Music.
Spotify’s record operating income in 2024
While Spotify has established itself as a market leader, generating high revenue, it has also seen a significant turnaround in operating income. The company moved from a loss of 446 million euros in 2023 to a record operating profit of 1.37 billion euros in 2024. This milestone was driven by growth in revenue, cost optimizations, and a surge in premium subscriptions. The net income of Spotify seems to confirm this, as Spotify recorded a net profit of 1.14 billion euros in 2024, compared to a net loss of 532 million euros in 2023 and 430 million euros in 2022.
The music streaming market is expanding
While Spotify has struggled with generating an operating income, the music streaming market is actually expanding. The number of subscribers to music streaming services has steadily been rising, highlighting the increased popularity of digital music consumption. While this development goes hand in hand with a decrease in physical music sales, the more recent upsurge in audio content streaming can partly also be attributed to the heightened demand in entertainment caused by the coronavirus pandemic.
