Spotify's revenues rose 80% to €1.95bn (£1.5bn) last year but its losses also rose by 10% to €173m.
“The economics of the freemium tier remain challenging and every single freemium user is lossmaking on a gross margin basis,” said Alice Enders of Enders Analysis. “What’s heartening is it is paying off in terms of subscribers. We think it’s made very good progress this year.”
At WWDC, Apple SVP Eddy Cue announced that the Apple Music service had reached 15 million paid subscribers. It reached that number in just under a year. The company also announced a revamp of the Apple Music app which will debut alongside iOS 10 in September.
Spotify is still the biggest streaming service in the world but it will face tough competition in the months ahead from Apple.
Have you tried both services? Which did you like most?