Spotify India ad revenue up 114%, at Rs 135 cr in FY24

Spotify India has recorded its revenue from operations at Rs 321.3 crore, a 92.6% higher from Rs 166.8 crore in FY23.

The advertisement revenue for the music platform jumped 114% from Rs 63.2 crore in FY23 to Rs 135.3 crore in FY24. Subsequently, the subscription revenue for the platform stood at Rs 167.8 crore for the fiscal, rising by 90.6% from Rs 88 crore in FY23.

The ad spends for Spotify India stood at Rs 386.8 crore, marking a 4.2% increase from Rs 371.2 crore in the previous fiscal, which means the Sweden based music platform spends more on advertising and marketing than their revenue from operations.

As per the report, the platform was able to narrow its losses from Rs 343.7 crore in the 2022-23 fiscal to Rs 143.3 crore in the 2023-24 fiscal period.

Spotify, which entered India in 2019, gets its primary source of revenue from periodic subscription fees. Revenue from providing advertisements through Direct and Ad Manager channels is also accounted as a major chunk in their business model. The platform is also engaged in sales of advertising space and conducting marketing activities in the local market.

Spotify India also earns revenue from support services, which includes support for content licensing, production and consulting.

The music platform has prioritised growing its user base and localizing content. India is one of the platforms' fastest-growing markets, with 615 million active users worldwide as of March 2024.

The company said in its Look Back Report of FY 23-24, “In 2024 and beyond, Spotify in India will remain focused on supporting artists locally and globally—especially in the worlds of film and artist-first, Indian pop music fandom—while enabling podcasters to find the best ways to more effectively create and monetise content.”