The chart above shows the net revenue of Spotify from the two different sources (premium subscriptions and advertising) from 2016 to 2022.
Spotify generates its revenue from two sources. Its main source of revenue are the premium subscriptions. However, the company also generates a small share of its total net revenue from advertising based accounts. In 2022, Spotify generated €10.25 billion from premium subscriptions and around € 1.5 billion from ad based accounts.
Spotify Revenue by Source 2016-2022
The following table shows the net revenue of Spotify from each source (premium accounts and ads) from 2016 to 2022.
| Year | Premium ( € m) | Ad based (€ m) | Total |
| 2022 | €10,251 | €1,476 | €11,727 |
| 2021 | €8,460 | €1,208 | €9,668 |
| 2020 | € 7,135 | €745 | €7,880 |
| 2019 | €6,086 | €678 | €6,764 |
| 2018 | €4,717 | €542 | €5,259 |
| 2017 | €3,674 | €416 | €4,090 |
| 2016 | €2,657 | €295 | €2,952 |
Spotify is world’s largest online music streaming network with a strong global presence. As of the end of 2021, the company offered its services across 184 countries and territories compared to 93 in the prior year. The company has also experienced impressive growth in its user base in 2021 compared to 2020.
The number of Spotify MAUs at the end of 2021 was 406 million compared to 345 million at the end of 2020. Of the total MAUs, the number of premium subscribers at the end of 2021 was 180 million compared to 155 million at the end of the prior year.
Spotify offers two types of services including paid and free accounts. The premium or paid accounts are the accounts that come for a monthly subscription fee and the free accounts are the ones that are ad based. The premium accounts are Spotify’s largest source of revenue. As the number of Spotify premium users increased in 2021 compared to the prior year, its revenue from premium subscriptions also surged.
Spotify generated €8,460 million in 2021 from premium subscriptions compared to €7,135 million in 2020; YoY increase of 19%. Its revenue from ad supported users grew by 62% in 2021 compared to the prior year. The company generated €1,208 million in 2021 compared to €745 million in 2020. The total net revenue of the company in 2021 reached €9,668 million or 23% higher compared to the prior year, when it generated €7,880 million in revenue.
Spotify’s net loss declined sharply in 2021 compared to the prior year. In 2021, its net loss was €34 million compared to €581 million in 2020.