Image via Billboard

Image via Billboard

Spotify did not turn a profit in 2013 despite having revenue of more than $1 billion for the year, according to the New York Times. The $1.03 billion that Spotify made in 2013 was a 74 percent increase from its figures in 2012, a fact that was revealed when the company’s filings were made public Tuesday (November 25). Still, Spotify reported $80 million in net losses for 2013. This is nothing new for the company, according to the Wall Street Journal, which notes that Spotify has been posting “deep losses since its inception.”

Where does Spotify, which was established in 2006, get its money? Aside from outside investors, the company earns 91 percent of its sales from subscriptions, not advertising. But the service provider says only 12.5 million of its 50 million users are paying for their music. All of this has been highlighted by a growing frustration from musicians, most notably Taylor Swift. After taking her music off Spotify, the singer called the company “a grand experiment” that she did not want to participate in. Meanwhile, Spotify’s 2014 numbers aren’t set to be revealed until fall 2015.