“Something must change soon on Spotify’s business model if the company is to survive”, according to a new report on the company’s finances.

As CNET note, data analysts PrivCo have produced a report on the company’s current financial situation – and it doesn’t make for heartening reading.

PrivCo report that, despite Spotify’s revenue increasing substantially in the last year, the company’s losses actually grew in the corresponding period. In 2011, the company posted $244m in revenue, a 151% jump on $97m the previous year. Unfortunately, the losses also grew, ballooning to $59m compared to $37.5m last year. A Spotify spokeswoman has confirmed that the numbers are correct.

CNET suggests that, for now, Spotify can rely on support from its investors, but speculates that, unless the company manages to secure more people paying for services rather than sampling them for free, the situation won’t be sustainable. It also notes that similar findings were originally reported in the Wall Street Journal back in August, albeit to little fanfare

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