Spotify was only recently boasting about having 10 million users in Europe but after publishing the parent company, Spotify Limited’s, 2009 financial results, it appears that the company has a long way to go. The results show that it posted a net loss of $US26.5 million for 2009, which was based on revenues of $7.2 million from advertising and $10.9 million from subscription fees. The company’s main cost is the licensing of music from major record companies, who are now applying the blow torch to Spotify and demanding that it increase the number of subscribers it has to its subscription premium service. Spotify is hoping the launch in the US next year, but it may have to reshape its business model if it keeps chewing through cash.

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