Spotify, the streaming music startup, was having serious trouble paying its bills, if you believed reports from earlier this year. Its 2011 financials showed a loss of nearly $60 million on revenues of $244 million. But it made $200 million in total revenue over the first six months of 2012, and is on an annual run-rate that could put it around $500 million by January.
Its deal structure with the labels requires either a $200 million annual payment, like what it had to do last year, or around 75% of total revenue (whichever is higher). 2012 will be the first year that revenue is high enough for the percentage structure to kick in.
The company is projecting profit after cost-of-sales to be around $60 million. It still has another $100 million in engineering, marketing, sales and other operating costs, on top of the licensing burden, so it’ll likely post an annual lo