Spotify Plans Canadian Launch This Year
Rdio is about to face some big competition in Canada now.
Popular streaming music service Spotify has plans to launch in Canada, according to newly revealed company documents.
The details on timing are scarce but it’s believed the move could happen by the end of 2012.
Currently available in 15 countries, including the US and the UK, Spotify established a subsidiary in Canada in 2011, and a spokeswoman told the Wall Street Journal that the company “of course plans to launch in new countries.” This is despite the fact that international expansion has amplified Spotify’s financial losses:
Spotify’s rapid international expansion has been costly. Last year its net loss widened to €45.4 million ($56.6 million), from a €28.5 million loss in 2010. The company’s large losses have been financed by its owners, and Spotify said it “cannot exclude the need or desire to raise more funds in the future,” adding that the source of any additional capital would have to be equity.
Spotify had 33 million users by the end of 2011 and an average annual revenue per user of about €6.
