Spotify Aus Revenue Drop Raises Eyebrows
Swedish music streaming giant, Spotify, could potentially gain the attention of the Australian Tax Office (ATO) after reporting what some commentators deem is a counter-intuitive drop in revenue.
According to AFR, Spotify reported just $416,000 in 2019 accounts, despite a boom in its usage over the same period. According to Roy Morgan, around 8 million Aussies harnessed the service in March (paid an/or unpaid).
It comes after Spotify’s local subsidiary reported ‘premium revenue’ of around $129 million in calendar 2016 – drawing hesitancy over its most recent $416,000 figure by some market commentators.
The ATO launched multinational anti-avoidance laws back in 2016, which some state has has coincided with a drop in reported Australian subscriber revenue.
Speaking to AFR, a Spotify spokesperson states individual subscriber revenue is no longer recognised in Australia, with the $416,000 figure stemming from a partnership with an Aussie telco.
Advertising sales generated by Spotify’s advertising team will reportedly continue to be booked here – around $21 million in 2019.
The news comes as Australian regulators continue to clamp down on international tech giants.