Monday, September 20, 2021

Spotify’s paid subscribers hit 165M as podcast listening ‘improved modestly’

According to a new earnings report, Spotify now has 165million premium subscribers and 365million monthly active users. It’s a year-over-year increase of 20 percent and 22 percent respectively, and up from the 158 million subscribers and 356 million MAUs seen last quarter.

Rivals Apple Music and Amazon Music don’t regularly release comparable numbers, but their most recent public figures compiled by Music AllyThey are roughly 60 million and 55 million respectively.

Spotify’s interest in podcasts has showed no signs of slowing this quarter, as it’s continued to make acquisitions and investments in both podcasting content and technology. Spotify recently acquired exclusive rights to two podcasts. Call her Daddy and Dax Shepard’s Armchair ExpertPodz, whose technology automates creating preview clips that highlight key moments from podcasts, is also available.

According to Spotify, the percentage of monthly active users engaged with podcast content last quarter “improved modestly” compared to the quarter prior, and podcast listening hit an all-time high in terms of its share of consumption hours on the platform. Spotify claims that Spotify has also reported that Joe Rogan Experience “continues to perform above expectations.” There are now 2.9 million podcasts available on Spotify, The Wall Street Journal Notes, up from 2.6million last quarter

Spotify is not only acquiring exclusive rights for podcasts but also offering paid subscriptions that will attract other creators to its platform. It launched its own podcast subscription feature in April and yesterday announced that it will allow paid shows from platforms such as Slate and Acast streaming through its service. These features should make Spotify a more attractive platform for podcast creators.

Spotify’s average revenue per user increased this quarter, reversing recent trends. The figure now sits at €4.29 (around $5.07) per premium subscriber, which is up from €4.12 last quarter. This increase is due to the service increasing its subscription prices in the UK this quarter and the US this quarter. However, the figure is still lower by 3 percent year over year.

Overall, the company made a net loss of €20 million, compared to a net loss of €356 million it made in the same quarter the previous year. This was mainly due in part to taxes that the company had paid regarding its Swedish workforce.

Today’s release hasn’t yet offered any more details about Spotify HiFi, the service’s forthcoming lossless streaming tier. Spotify has yet to announce pricing or a launch date, despite having announced the new tier in February. Apple Music, a competitor to Spotify, has also announced and released its own lossless streaming feature. It is free to all users. Amazon also dropped the premium it used to charge for its lossless streams that day. Spotify might not like it but the lossless streaming market today is much more competitive than it was back in February.

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