This article is talking about the rise of subscriptions that how made a great impact on Spotify. Spotify is a music app, where people can listen to music whenever they want and they can do it online and offline. Since last year, in 2015, Spotify's total UK revenue had seen an increase by 18%. They had also seen an increase in the number of users that were previously using Spotify for free but now paying it. A spokesman from Spotify talked about how '2015 was their best ever year in the industry' as they had never seen a great increase like they had last year. In addition, the total number of UK staffs had also increased from 167 to 180 due to the major increase in their revenue.
- Revenues at Spotify’s UK business grew to almost £190m last year as subscription income soared by over 40% thanks to music fans flocking to the company’s mobile service.
- The UK company made a small pre-tax profit of £2m, up marginally from £1.67m in 2014, while globally the business made a loss of €173m (£156m) last year. Operating profits in the UK grew from £674,000 to £6m.
- This was fuelled by a 44% surge in subscription revenues from £119m to £171m.
- The streaming service has 100 million users worldwide, of which 40 million are paying subscribers.
In my opinion, I believe that Spotify is a beneficial tool for the upcoming years in New/Digital Media. This is because of the fact that everyone, nowadays, is starting to use a smartphone rather than a more traditional media platform, e.g. the radio. Therefore, since the radio platform is a dying media, then this is an advantage for Spotify as it will start to consume more users and also see an increase in their revenue. In addition, I believe that the £9.99 a month is a good idea as they (Spotify) will gain more money and the users can benefit too by this as they can listen to over 30 million songs of their own choice.
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