The music service via Streaming, Spotify, estimates to increase, during this 2021, the cost of its subscription due to the economic losses that the company has registered in the last two years.
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According to some specialized portals, the increase in subscription in family plans will take place in 25 markets in Europe and Latin America where Spotify has presence. In addition, this increase will be added to that applied at the end of 2020 in 11 international markets.
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This decision is due to the fact that during 2020 Spotify recorded net attributable losses of € 581 million for 2020 as a whole, tripling the losses of € 186 million recorded in 2019.
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According to the financial reports of the company that were released by some specialized portals, it details that the income between January and December was 7,880 million euros, which is equivalent to an increase of 16.5 percent compared to 2019. From its On the other hand, the costs associated with the income, derived largely from the copyright that Spotify has to pay artists and record companies, they rose 16.3 percent, reaching 5 thousand 865 million euros. In this way, Spotify’s gross margin was 2.15 billion euros in 2020, 17 percent more than the previous year.
Regarding the operating costs of the platform Spotify, those related to sales and marketing grew 24.6 percent, reaching 1,29 million euros, while general and administrative expenses were 442 million euros, 24.9 percent more. Research and development (R&D) increased by 36 percent to 837 million euros.
Thus, Spotify saw its margins worsen over the past year. While the operating result was negative by 73 million in 2019, during 2020 it was negative by 293 million.
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