While it's the most extended and broadest musical streaming service in the world (with the widest coverage of territory, the most users and the biggest catalogue), Spotify still isn't making a profit. That's one of the conclusions of the latest financial reports on the company, made public a few days back. The reports also reveal that they're planning on starting up in Canada, Asia and South America. In fact, Spotify already installed offices in Canada, Hong Kong and Singapore, which means it’s likely those are the three first territories to be added to the list of fifteen countries the Swedish company operates in.
However, the expansion doubled the firm's losses in one year. In 2010, their estimated loss was 28.5 million euros, and in 2011 it was 45.4 million. Nevertheless, the territory expansion also improved the streaming service's revenue. More listeners mean more subscriptions and elevated costs for advertisers. Total revenue in 2011 was 187.8 million euros, while the previous year, it was 73.9 million.
According to the latest counts, Spotify has 32.8 million users worldwide; giving the company an average of 5.73 euros per person, who enjoy streaming music that's worth 200 million euros in label contracts.