Leading music streaming service Spotify on Wednesday reported that it grew its user base to 108 million Premium (paid) subscribers and 232 million total active monthly users as of the end of June. The company’s second-quarter operating loss came out narrower, with quarter revenue rising 31 percent compared to the year-ago quarter. Spotify also announced two new deals with major music labels.
The company’s second-quarter user figures exceeded Wall Street estimates, with a rise from 100 million paid subscribers and 217 million total active monthly users as of the end of March 2019.
The paid subscriber results came slightly below the company’s own forecast, with the company citing lower-than-expected student subscriptions.
While it continues to lead in both paid and free subscribers, Apple Music has been growing from strength to strength. Apple Music had 60 million subscribers as of June, including users on a three-month free trial. In fact, Apple Music reportedly passed Spotify in paid subscribers in the US back in April, as reported by The Wall Street Journal. Apple Music’s worldwide and US growth rates are reportedly higher than Spotify’s.
Spotify CEO Daniel Ek said, in response to Apple’s US subscriber strength, “The only thing we can say is really that we are focusing on our own growth, and we are still seeing great numbers in North America and across the board.”
“All of our competitors have their relative strengths,” he said.
Apple Music has the advantage of being pre-installed on iPhones and iPads, which cover a billion devices around the world.
Spotify continues to focus on its freemium model, as well as personalised stations and in ubiquity.
The company announced two deals with major music labels on the renewal out its global sounds recording licenses. It is in active discussions with its other two partners.
Spotify’s second-quarter operating loss amounted to USD3.3 million, with a narrowed net loss of USD84.7 million compared to the year-ago period. Quarterly revenue rose 31 percent to USD1.86 billion, while operating expenses increased 4 percent.
The company continues to put focus into growing its podcast content and reports that tens of millions of users are now consuming podcast content. Its podcast audience grew more than 50 percent quarter-on-quarter, and has doubled since the start of the year.
Source: Spotify VIA Hollywood Reporter
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