Is Spotify's business model broken?

Spotify CEO Daniel Ek

(Credit: Sarah Tew )

PrivCo., a company that sells data on non-publicly traded companies says it has obtained Spotify's financial report for the past two years.

According to the documents posted to PrivCo's site, Spotify, an on-demand streaming music service, reported a net loss for 2010 of $37.5 million on $97 million in revenue.

For 2011, the company's revenue increased 151 percent to $244 million but losses also widened by 60 percent to $59 million, PrivCo reported.

The numbers have not been confirmed by Spotify. A spokeswoman said the company is aware of the data posted to PrivCo. and is preparing to make some kind of statement soon.

I've also reached out to PrivCo for comment. We'll update as soon as we hear more.

PrivCo seems pretty sure it has the correct data, judging from the screaming headlines on the site. PrivCo says Spotify's business model is "unsustainable" and wrote to its clients that "Something must change soon on Spotify's business model if company is to survive."

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