Home > Latest News > Spotify Aus Revenue Drop Raises Eyebrows

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.

You may also like
Sony And JBL To Go Head To Head In Party Market
Sennheiser Receive Bailout Loan
Klipsch Launch Bold Alternative To Soundbars – The Fives
LG Unveil ‘Self-Cleaning’ Earbuds With Meridian Sound
Sonos CEO Pay Cut, Staff Axed & Offices Close