Spotify hemorrhaging money, possibly boned

Spotify hemorrhaging money, possibly boned

Last week wasn’t a good one for Spotify.

Amid announcements that the streaming music service is teaming with Samsung to bring its particular brand of legal streams to TVs and DVD Blu-Ray™ players throughout Europe, CNET is reporting that, regardless of their 151% jump in revenue compared to 2010, the company is operating a major loss. CNET quotes PrivCo, an organization that essentially mines data on private companies’ financial statuses, declaring Spotify “unsustainable” and confirms the numbers with a Spotify spokesperson.

It seems that, as Spotify grows, it is paying out more in royalties than any amount of advertising revenue or premium memberships can compensate for. Overall, net income dropped from -$37,555,868 to -$59,136,294. While these numbers look pretty dismal, as long as Spotify’s private investors keep ponying up the cash (Coca-Cola are in investment talks too), you can still watch your friends play the same four Ke$ha songs over and over at 4 AM via your Facebook feed.

• Spotify: http://www.spotify.com
• Ke$ha: http://www.keshasparty.com

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