Spotify Reports It Has 108 Million Paid Subscribers In The World

Jyotis - Aug 05, 2019


Spotify Reports It Has 108 Million Paid Subscribers In The World

Spotify also reports that there was a 30 percent increase YoY in the number of premium subscribers, hitting 108 million. However, this number was still lower than the one forecast by analysts (108.5 million).

The shares of the media-services provider Spotify decrease by 5 percent in trading due to the decline in the number of its new paid subscribers over the previously expected number. As a result, a lot of indicators including gross margins, user engagement successes, and revenue of the company were affected in Quarter 2 2019.

Spotify-Paid-Subscribers

Spotify also reports that there was a 30 percent increase YoY in the number of premium subscribers, hitting 108 million. However, this number was still lower than the one forecast by analysts (108.5 million).

In a shareholders note published on July 31, when talking about subscribers, Spotify CEO Daniel Ek admitted, “We missed on subs. That’s on us.” He also said the digital music service hoped to “make up lost ground before year-end.”

According to the Atlantic Equities analyst James Cordwell,

Quote 1

In terms of Spotify’s revenue from paid subscribers in Quarter 2, the revenue occupied about 90 percent over the total revenue, increasing to 1.67 billion dollars (1.50 billion euros).

Spotify-Report

During over-10-year operation, Spotify has persuaded many music artists, as well as famous record labels, to change how users enjoy music. As of now, the app has become the most prominent music streaming platform in the world.

In a bid to grow more, Spotify has recently introduced its service in some new regions like India, the Middle East, and South Africa. Meanwhile, the company keeps expanding its market in developed countries.

In addition, Spotify is also competing with a big rival, Apple Music. Last month, the video streaming service from the iDevice manufacturer had over 60 million subscribers.

When having a talk with analysts via a conference call, the Spotify CEO said the company’s YOY subscriber growth reached 31 percent,

Quote 1

The number of its active users per month (including the number of users of the free version) increased by 29 percent to 232 million. That means it is even higher than the expected number (227.7 million).

In Quarter 3, Spotify is expected to attract from about 240 million to 245 million active users per month. Also, analysts believed that the app would have 242 million users by the end of this Quarter.

Refinitiv’s IBES data reported that its revenue increased to 1.67 billion euros within three months (by June 30), compared to the previous-year revenue (1.27 billion euros). The number was higher than that expected by analysts (1.64 billion euros).

Tags

Comments

Sort by Newest | Popular

Next Story