Spotify posted its biggest quarterly profit ever in Q2 2024.
According The music business around the worldSpotify reported total quarterly revenue of $4.098 billion in the second quarter of 2024, achieving a record operating profit of $286.4 million.
Spotify attributed its success to the addition of seven million new premium subscribers and five million new ad-supported subscribers. As of today, the streaming service has a combined total of 626 premium and ad-supported users across its platform.
According to Music Business Worldwide, Spotify’s operating income also reflected its “lower staffing and related costs,” which was a result of the company’s decision to cut 17% of its global workforce by December 2023.
News of Spotify's record profits will no doubt fuel criticism the streaming service has received from artists and creatives over lackluster royalties and other concerns about payments. The Mechanical Licensing Collective recently filed a lawsuit against Spotify over allegations that the company defrauded songwriters out of $150 million in royalties by reclassifying certain premium services as packages.
Meanwhile, in June, Spotify CEO Daniel Ek came under fire after bizarrely claiming that creating “content” costs “almost zero.”
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