Spotify is clearly number one in the music streaming business. The company missed its own forecasts for user growth, but there is still reason to be happy.
Spotify gained significantly more paying subscription customers than users in the free version in the past quarter. Due to this unusual development, the global market leader in music streaming also missed its own forecast for growth in the number of users.
In the second quarter, the number of Spotify users rose within three months by 9 to 365 million, as the Swedish company announced on Wednesday. Spotify, on the other hand, had promised 366 to 373 million users. At the end of the year, Spotify is now expecting up to 407 million users instead of the up to 422 million expected three months ago.
Quarterly sales rose year-on-year by 23 percent to 2.33 billion euros. The majority of this comes from subscription payments with a good two billion euros. Thanks to Spotify’s podcast offensive, advertising revenues were more than doubled to 275 million euros.
The bottom line is that Spotify posted a loss of 20 million euros after a loss of 356 million euros a year earlier. In the first quarter of this year, however, it was already enough for a surplus of 23 million euros.
The number of subscription customers rose from 158 to 165 million within three months. In the free version, Spotify now has 210 million users – 2 million more than in the first quarter.
Spotify is considered to be the clear number one in the music streaming business ahead of Apple. The iPhone company had more than 60 million subscription customers in its Apple Music service in the summer of 2019 – and has not given any new figures since then. Unlike Spotify, Apple does without a free version and has recently improved its offer with music in better quality and spatial multi-channel sound.
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