The following chart displays Spotify’s net income from premium accounts and advertisements from 2016 through 2021.Also Spotify Revenue breakdown distributed in ad based for free users and premium paid subscribers.
Spotify Revenue breakdown
|Year||Premium ( € m)||Ad based (€ m)||Total|
About Company Spotify
The largest online music streaming service in the world, Spotify has a significant international following. By the end of 2021, the company had 184 nations and territories where its services were available, up from 93 the year before. In comparison to 2020, the company’s user base has impressively increased in 2021.
In comparison to 345 million at the end of 2020, there were 406 million Spotify MAUs at the end of 2021. At the end of 2021, there were 180 million premium customers out of the total MAUs, up from 155 million at the same time the previous year.
Spotify Business model
Spotify offers both premium and free accounts as part of its two service tiers. The free accounts are those that are ad-based, but the premium or paid accounts require a monthly subscription cost. The majority of Spotify’s income comes from its premium accounts. Spotify’s revenue from premium subscriptions climbed along with the rise in the number of premium customers in 2021 as compared to the previous year.
Spotify Revenue breakdown by type of subscription
There are two different service tiers offered by Spotify: paid and unpaid accounts. The paid or premium accounts require a monthly subscription charge, whilst the free accounts are supported by advertisements. Spotify’s main source of income is through premium subscriptions. In 2021 compared to the previous year, Spotify’s revenue from premium subscriptions increased along with the number of premium customers.
In 2021 compared to the previous year, Spotify’s net loss significantly decreased. Its net loss dropped from €581 million in 2020 to €34 million in 2021.
Latest Earning result from Spotify
The second quarter’s total sales increased by 23% year over year to 2.9 billion euros, or roughly $2.94 billion. To 2.5 billion euros, or around $2.53 billion, in premium revenue, it increased by 22% year over year.
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