The streaming music company has been making some big moves in the industry as of late, and seems to be succeeding. But that doesn’t mean the company has reached profitability yet. According to a new report, Spotify’s operating losses rose to somewhere between $350-$450 million last year, compared with $205 million the year before.
The news comes despite the company’s revenues increasing 50% – up to $3.1 BILLION this year. Of course, this calls into question the ability of the company to turn a profit. But that remains to be seen as new licensing agreements with most of the major and indie labels out there and other power-moves, acquisitions and partnerships come into effect.
In an effort to stay ahead of it’s main rival Apple Music (which is, of course, backed by a massive tech company), Spotify purchased a machine learning startup, Niland. They also acquired other companies like MightyTV and Sonalytic that make recommendations for content based on machine learning.
Although the numbers may be frightening, the growth the company is seeing and the strategic moves it’s making may help the company stay on top of the music streaming wars in the near future.