Spotify’s Ad Revenues See Big Jump in 2015
Something to consider if you're thinking about launching your own streaming service: Spotify is now worth more than the U.S. recording industry.
At least it is judging by how much the company is estimated to be worth, as it pitches investors and attempts to raise $400 million.
According to numbers that became available over the weekend, though, Spotify does appear to be raking it in. In the first quarter of 2015 alone, the company made 53 percent more revenue than they did in the first quarter of last year.
The company's active user base increased at the same rate (50 percent) in a similar time period -- from May 2014 to January 2015 -- according to Music Business Worldwide.
If you separate mobile-only ad revenue, the company's earnings went up a staggering 380 percent.
Meanwhile, Spotify continues to develop more ways to grow their ad revenue. We reported last week that the company is going to start targeting listeners with specific kinds of ads based on what they're listening to. “Our new targeting solutions based on rich behavioural insights combined with our global footprint in 58 markets give brands unprecedented ways to reach streaming consumers,” Spotify Chief Revenue Office Jeff Levick said.