Those Premium price increases must be working.
Spotify raked in enough cash and new subscribers in 2024 to celebrate its first full year of profitability since the service was launched in 2008. The announcement comes as part of Spotify’s fourth-quarter earnings release, with net profits at €1.14 billion (around $1.17 billion) for the whole of 2024, compared to the €532 million (around $549 million) in losses reported last year.
Spotify said in November that it was on track to hit its profitability milestone. Total yearly revenue grew to €15.6 billion (about $16.1 billion) from the €13.2 billion (about $13.6 billion) reported for 2023. That was driven in part by an 11 percent year-over-year increase in Premium subscribers, jumping from 236 million to 263 million, while the total number of monthly active users rose 12 percent to 675 million.
The growth in subscribers comes despite raising the price of its Premium subscriptions twice within an 11-month period. The jump from $9.99 to $10.99 per month in July 2023 marked the first time that Spotify had increased its US pricing since launching in the country in 2011, and was later followed by an increase to $11.99 a month in June 2024.
New AI playlist and audiobook features have rolled out across the same period, but there’s still no mention in today’s report of when Spotify’s long-promised lossless streaming option could launch.
“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” says Spotify CEO Daniel Ek. “We will continue to place bets that will drive long-term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably, and deliver creativity to the world.”