Spotify UK has announced that they recorded a loss in revenue last year.

The firm focused on its growth but suffered a loss of £10.1 million in 2012 compared a profit of £21 million in 2011.

The loss that the music service suffered was largely down to a decline in subscription revenue although they did see an increase in revenue from advertising thanks largely to their partnership with companies such as Vodaphone.

A spokesperson representing Spotify commented about the firm’s US profits to NME: "During 2012 Spotify saw dramatically increased revenues while maintaining a free to paid conversion rate of well over 20 per cent – unheard of for a freemium business, and a clear demonstration of the success of the business model. In 2012 the business focused on driving user growth, international expansion and product development, resulting in soaring user numbers and increased market penetration. Our key priority throughout 2013 and beyond remains bringing our unrivalled music experience to even more people while continuing to build for long-term growth - both for our company and for the music industry as a whole."

Spotify UK maintains that their main goal is to make sure that artists are properly compensated for the use of their music.