Financial Times said Spotify, the Swedish digital music service that has been valued at $3bn, doubled its revenues in 2012 but burnt through cash as it attempted to grab a bigger share of the fast-growing streaming market.

The company, which has faced criticism from some artists for paying too little, said: “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.”

The company’s latest financial statements, filed in Luxembourg, show that its sales surged from €190.4m in 2011 to €434.7m in 2012, as its number of active users doubled to more than 20m, according to FT.com.However, the company’s net losses widened to €58.7m, compared with €45.4m in 2011.

Daniel Ek, who co-founded the Swedish company, told Wall Street Journal that the company has successfully widened the gap between the revenue Spotify pulls in and the royalties it pays to record labels, collecting societies, artists and publishers. “We see that we’ve now actually proved our business model.”