Spotify now boasts 155 million premium subscribers and 345 million month-to-month lively customers, in response to its newest earnings report launched in the present day. These numbers characterize a 24 % and 27 % year-over 12 months improve. Its largest improve was in ad-supported month-to-month lively customers, which rose 30 % to 199 million. Final quarter, it reported having reached 144 million subscribers, and 320 million month-to-month lively customers.
Nonetheless, regardless of the expansion in listeners, The Wall Road Journal notes that the common income per consumer fell by 8 % to €4.26 (round $5.13) in comparison with a 12 months in the past. That’s due to the discounted plans used to lure in new subscribers, and the decrease costs it fees in markets like Russia and India. Advert income was up, nonetheless, accounting for 13 % of income regardless of traditionally bringing in lower than 10 %.
Total Spotify nonetheless made a lack of €125 million, however that’s down from the €209 million loss it made the 12 months earlier than. It’s uncommon for Spotify to publish a revenue as the corporate continues to put money into development, in response to the WSJ.
The earnings announcement comes as Spotify continues to make large investments exterior of music, the service’s conventional power. It lately made strikes into audiobooks, experimenting with providing recordings of celebrities studying public area books like Frankenstein, and Narrative of the Lifetime of Frederick Douglass, an American Slave.
Spotify can also be investing closely in podcast. This quarter, the corporate continued to signal large names for its podcast enterprise like Prince Harry and Meghan Markle, and Ava Duvernay. It now presents greater than 2.2 million podcasts by way of its service, with podcast consumption up almost 100% in comparison with the identical time a 12 months in the past. Spotify says that 25 % of its customers engaged with podcast content material in the course of the quarter.
Spotify has argued that its funding in podcasts specifically will increase utilization, engagement, and buyer retention, and current a possibility for it to lower its reliance on licensing music from labels. Spotify reiterated that perception in in the present day’s earnings launch.
Nonetheless, some analysts say the funding in podcasts has but to meaningfully repay, CBNC lately reported. Writing in an investor notice, analysts at Citi stated that “up to now, we’ve not seen a fabric constructive inflection in app downloads or Premium subscriptions” on account of Spotify’s podcast investments. Final 12 months, stories indicated that Spotify was exploring the opportunity of a subscription podcast service, opening up one other supply of revenue.
This earnings report received’t be Spotify’s final main announcement of the month. Yesterday the corporate teased a “Stream On” occasion happening on February twenty second. In in the present day’s launch, the corporate stated it is going to use the occasion “to share the newest on the state of worldwide audio streaming and the place it’s headed sooner or later.”