Spotify has today announced that it added a further 11 million users in the last three months, bringing its total user figure to 356 million. That’s a significant increase compared to early 2020.
Spotify said it finished within its guidance range but admitted that the number was below their internal expectations. Meaningful contributions came from markets like the US, Russia, India and Mexico, while regions such as Latin America and Europe underperformed.
Of those 356 million members, Spotify said 158 million are of the premium (paying) variety. The company added nearly four million paying subscribers in the quarter, near the top end of its guidance range, but still only an increase of about two percent compared to the previous quarter.
It’s likely that the pandemic helped alter people’s behavior, and the company credits “higher retention offerings like Family Plan” to ensure people don’t cancel their subscriptions. Similarly, another benefit has been the increased focus on podcasting, which saw ad-supported revenue growing significantly during the period. Joe Rogan’s exclusive show has performed “above expectations,” while President Barack Obama and Bruce Springsteen’s Born in the USA was the “second largest podcast on Spotify” through March.
This month, Spotify has been drip-feeding a number of announcements about the future of its business. That includes the limited release of “Car Thing,” a smartphone-sized unit designed to upgrade older cars with a Spotify-created voice assistant. Similarly the company has launched podcast subscriptions (with generous financial terms) and a new music player that works inside Facebook as part of a broader team-up between the two companies. Meanwhile, family plan users in the US and Europe have seen the cost of their plans increase by $2 / £2 per month.
And the rumors suggest that Spotify’s complaint to the European Union about Apple’s cut of App Store fees will soon lead to real action. It’s believed that the EU will issue antitrust charges against the iPhone maker for how it mandates the use of its own payment system inside the App Store. A process which Spotify, Epic, and a number of other developers, feel is unfair. This, however, all comes in the shadow of sustained criticism that the company doesn’t compensate artists fairly.
Spotify said that it chalked up Operating Income of €14 million ($16.8 million), but expects to lose between €150 million-€250 million ($180 million – $301 million) across 2021. But that it is hoping, throughout the year, to break that all-important 400 million user figure, or perhaps even surpass it.
