Is Spotify’s business model broken?

Spotify CEO Daniel Ek
(Credit: Sarah Tew )
Spotify’s financial performance in 2011 was abysmal.
As revenue increased 151 percent from 2010, the on-demand streaming music service saw losses widen 60 percent for the same period, according to documents posted today by PrivCo, a company that sells data on non-publicly traded companies.
A Spotify spokeswoman told CNET that the numbers posted to PrivCo.’s site were accurate. But it turns out that the figures aren’t exactly new. They were first reported in August by The Wall Street Journal, which tucked them into a story titled “Spotify to launch…

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