Tech

Spotify turns into another solid block as it approaches 400 million users

In short: Spotify said this week that it ended the third quarter with 381 million monthly active users, up 19 percent from the year and four percent more than the previous quarter. Of these, 172 million are premium subscribers, meaning they pay a monthly fee to use the service without ads. The remaining 220 million monthly active users are ad-supported users who are shown ads but do not pay a monthly fee. Of the two, the first is more valuable to Spotify.

When it comes to finance, Spotify’s ad revenue increased by 75 percent compared to the same period a year ago. The streaming giant ended the quarter with total revenue of € 2.5 billion ($ 2.9 billion), up seven percent from the previous quarter and 27 percent year over year.

Spotify said its podcast business performed very well in the third quarter. The platform ended a three-month period with 3.2 million podcasts in its library, adding that the share of podcasts in total consumption hours reached a new all-time high in the third quarter.

Looking ahead, the streaming music leader said it expects 400 to 407 million monthly active users and 181 million premium subscribers by the end of the year. Total Q4 revenue is expected to be between € 2.54 billion and € 2.68 billion.

Spotify said earlier this year that its users will have access to lossless CD-quality audio by the end of the year. We’re not quite ready to flip the calendar just yet, but time is ticking and if Spotify wants to keep its promise, it will need to turn on HiFi soon.

Image Credit Alexander Shatov


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