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Accounts filed with Companies House show the likely reason Spotify wanted to break America so badly.
Last year, the music service’s revenue exploded by 458 percent, but its income was more than swallowed up by growing outgoings. So Spotify finished 2010 with a deeper annual loss of £26.5 ($41.46) million.
“It is crucial that Spotify continues to penetrate existing and new markets as quickly as possible,” according to Spotify’s accounts filed at Companies House.
2010 was, however, the year when subscriptions (£45 ($70.4) million) began leaping ahead of advertising income (£18 ($28.16) million) for Spotify…
These accounts, of course, are almost a year old. In 2011, Spotify tightened available free music and got the U.S. launch it wanted. Now its path to success looks far more likely. It now has over two million paying subscribers – more than any rival service.
In fact, it looks like the scale that will come with U.S. launch is more needed than wanted.
The company has now hired a U.S.-based partnerships GM, Clear Channel (OTCBB: CCMO) digital executive Gerrit Meier, likely to strike bundled carriage deals, AllThingsD reports.
Spotify sent paidContent this statement about the financial year…
“Since its launch in late 2008, Spotify has grown faster and become more popular than any other music subscription service of its kind, globally.
“In 2010, we continued to grow our European user base, adding hundreds of thousands of paying subscribers, now representing a ratio of paid subscribers to active free users of over 15 percent, which is phenomenal for any ‘freemium’ business.
“Product development remained a priority in 2010, with ongoing investment in innovation to offer our users the best music service possible and the biggest upgrade to Spotify since launch, including social features and the ability to combine local files with our own library of millions of tracks.
“We continued to invest in international growth, laying the foundations for new market launches, most recently launching in the US in July of this year.”