Yesterday, we explored the numbers behind Spotify’s tremendous growth in subscription and advertising revenue counterbalanced by its shrinking gross margins. Today, we will discuss where all of that money is going.
Spotify recently released data showing that it had surpassed $2 billion in revenue with an 8.7% net loss. However, these were far from the most interesting data points that became public. The near doubling of advertising revenue, the fall in effective monthly revenue per user and the contracting margins are noteworthy.
Internet radio audience has grown quickly. The industry commands somewhere between 600 – 900 million monthly listeners globally depending on which analysis you choose to cite. In the U.S., 57% of the population listens monthly and 50% weekly. The growth will allow Internet radio and streaming music services to capture an increasing share of the $42 billion in mobile advertising forecasted for 2016.
What do industry insiders think are the most important issues and trends facing Internet radio and streaming services? Advertising. You can see this clearly in answers to two of the questions from a recent survey of over 200 people working in the industry.