Spotify’s UK subsidiary has filed its financial results for 2016, offering an insight into the company’s business in that country.
The streaming service’s UK revenues grew by 27% to £237m (around $311.9m) with subscriptions up 26% to £215m and advertising revenues up 62% to £17.5m.
Spotify UK recorded a net profit of £1.9m for 2016, as the company’s operating profit surged from £6.1m to £25m. The interesting stats for us, though, was that Spotify ended 2016 with 7.1 million monthly active listeners in the UK, including 2.8 million paying subscribers.
The obvious comparison is to broadcast radio: Spotify’s reach may still pale next to the 49.1 million British adults who tune in to traditional radio at least once a week (according to last week’s figures from industry body RAJAR), but the streaming service’s 7.1 million audience at the end of 2016 is creeping up, for example, on the 9.7 million reach of the BBC’s Radio 1.
Although if we’re thinking about more mainstream listeners, BBC Radio 2 has a reach of 15.4 million, so there’s a way to go for streaming in general there, not just Spotify.
Bear in mind we’re comparing Spotify’s December 2016 figure with the radio stations’ Q3 2017 stats here: the streaming service will have grown since the end of last year.