Spotify News: Big Losses, Big Hires And Cash For App Developers
Spotify is on a roll, but it's coming at a cost. The company reported a 2010 loss of $41.5 million after taxes, compared to a loss of $26 million in 2009. The loss comes despite a 458% increase in year over year revenue to $98.8 million in 2010. Ad revenues grew from $7 million to $28 million in that period, while its subscription revenues increased from $10.6 million to $70.5 million.
The numbers, first reported by Music Ally, come from financial results filed with Companies House in the UK, but represent activity throughout the UK and Europe.
But despite the losses, Spotify has it's eyes set on growth. A new Facebook integration is quickly attracting new users. To monetize the increase, the company has hired top Clear Channel digital exec Gerrit Meier to head business development, and last month hired former AOL exec Jeff Levick as head of sales.
As part of an effort to extend it's platform and drive innovation, Spotify will now allow developers to sell apps or embed ads in them, according to Evolver.fm.