Spotify Secures First-Ever Annual Profit in 17-Year History
On Tuesday, Spotify released its fourth-quarter earnings report, announcing that, for the first time in its 17-year history, the company has achieved full-year profitability. In the 2024 fiscal year, the company’s total operating profit stood at €1.4 billion (approximately $1.5 billion), with the fourth-quarter earnings alone reaching €477 million (around $509 million). The report was published by TechCrunch.
Additionally, in the last quarter, Spotify added 35 million new monthly active users—the highest fourth-quarter growth in the company’s history. This surge has increased the total number of active users to 675 million, marking a 12% rise compared to the previous year.
Despite two rounds of price hikes for premium subscriptions, the number of paid subscribers rose from 240 million to 263 million.
Spotify is also preparing to introduce a HiFi or “Super Premium” subscription tier, which could cost $5 more than the current premium plan, potentially reaching $17 or $18 per month, according to CEO Daniel Ek.
One of the key factors behind Spotify’s profitability is its new multi-year distribution agreement with Universal Music Group. This deal aims to ensure fair royalties for artists while also introducing new features for users.
