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Positive Spotify Earnings; Pressure Grows In Online Music Streaming Market

Positive Spotify Earnings; Pressure Grows In Online Music Streaming Market

Spotify's revenue has risen to $2.1 billion over the course of 2015, and it has double in growth from the previous year, Reuters reported.

Subscriptions to Spotify's premium service made up 91 percent of the income generation. With the massive increase in revenue, Spotify also saw a large increase in operating expenses as it launched its service in more countries and invested heavily in product development. The company had a net operating loss of $206.05 million in 2015 versus a $184.38 million in 2014.

The company is pressured by Apple Inc. (NASDAQ: AAPL)'s Apple Music and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Google Play Music and YouTube as the market is becoming crowded.

Related Link: Pandora Sale? Analyst Says Not So Fast

Spotify launched new content to attract users in the competitive environment. It now streams videos and podcasts from TED Talks to NPR as well as a cool feature that matches music to the pace of a user's run, according to Reuters. It also tailored a Discover Weekly feature that custom fits two hours of new music for each individual user.

Apple Music is gaining on Spotify with 13 million users already in just over a year of launching and currently streams in more than a 100 countries. Competitors for Spotify also include Pandora Media Inc (NYSE: P), German start up SoundCloud and Jay Z's Tidal.

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