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Original scientific paper

https://doi.org/10.38190/ope.15.1.6

STREAMING PLATFORM SPOTIFY ON THE THRESHOLD OF PROFITABILITY

Joško Lozić orcid id orcid.org/0000-0001-5568-5279
Katerina Fotova Čiković orcid id orcid.org/0000-0003-0138-1362
Ines Lozić


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Abstract

The streaming platform Spotify has become the largest music platform globally by number of subscribers and has played a transformative role in the digitalization of the music industry. This paper investigates Spotify’s financial trajectory over the past seven years, examining its journey toward profitability in the context of the platform economy. Specifically, the study addresses three research questions: the overall financial success of the platform, the growth trend in user numbers, and the evolution of share prices. The methodology includes financial trend regression analysis and ANOVA to explore the relationship between operational metrics and stock performance. Data were drawn from Spotify’s annual reports and public databases. The findings indicate that Spotify is entering a period of financial stability, with a positive net income achieved for the first time in 2024. These results have practical implications for understanding monetization strategies in digital platforms and theoretical significance in relation to platform economics and disruptive innovation.

Keywords

digital transformation; music industry; platform economy; Spotify; streaming

Hrčak ID:

334777

URI

https://hrcak.srce.hr/334777

Publication date:

18.4.2025.

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