Spotify is a global digital music streaming service, founded in Stockholm, Sweden in 2008. It provides users with access to millions of songs and albums from over 65 countries and has become the leading music streaming platform in the world.
Spotify has over 286 million active users and over 113 million subscribers as of 2020.
The platform offers both free and premium services, with the latter allowing users to choose from different subscription plans. The free plan gives users access to millions of songs but with advertisements, while the premium plan allows users to listen to music ad-free and get access to exclusive content.
Spotify’s revenue comes mainly from subscription fees, which make up about 86% of its total revenue. The remaining 14% comes from advertising revenues. Spotify also makes money through partnerships with record labels and artists who have signed up for their services.
The company has been profitable since 2017 when it reported an operating profit of $389 million on total revenues of $5 billion. In 2019, its operating profit was $1.9 billion on total revenues of $7 billion, while in 2020 it reported an operating profit of $1 billion on total revenues of $6 billion.
Spotify is a success story not only in terms of profitability but also in terms of customer loyalty and engagement. According to recent surveys, 70% of Spotify’s customers are satisfied with the service they receive.
Conclusion:
Yes, Spotify is a profitable company with increasing operating profits since 2017. Its success is also reflected by customer satisfaction levels that remain high at 70%.
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