Spotify is not doing poorly these days as the audio streaming platform announced its premium subscribers have jumped to 188 million, and monthly active users now sit at 433 million. The company revealed this during its earnings release.
You can see the company’s Q1 performance here.
This means the Swedish company grew its premium users by 14 percent and MAU by 19 percent between the first and second quarters. Spotify said this was the largest ever growth in a second quarter, and the performance exceeded its expectations.
Spotify is attempting to get into the podcast market, but the effort is not going as smoothly as it wants. The platform lost some of its biggest podcasts, including the Obamas, who decided not to renew their high-profile deal and go with Audible. Spotify also lost Reply All, hosted by Alex Goldman and Emmanuel Dzotsi.
However, Spotify still qualifies as a podcasting giant. It still boasts of shows like The Joe Rogan Experience and Breaking Bread. It is also still attracting more podcasts. It bought podcasting companies Podsights and Chartable this year.
Spotify has identified another source of growth; audiobooks, and it might be the next big thing for the company. It bought audiobook platform Findaway in 2021 to grow the new business.
All these growths did not translate into profit as Spotify lost €125 million or about $127 million. However, the company focuses more on subscriber growth. Its average revenue on each user is now €4.54 or $4.60, an increase from €4.38 or $4.44 in Q1 2022.
The second quarter was yet another quarter that Spotify did not say anything about Spotify HiFi, its new subscription tier that is supposed to offer higher sound quality that matches CD outputs. Spotify announced this plan early last year but has not announced the pricing or availability date. Apple and Amazon already offer such services on their respective music streaming platform, and Spotify said its own would be available before the end of last year, which didn’t happen. Just what is delaying the rollout is not known.
Spotify is generally accepted as the leader in music streaming but with its biggest rivals not in the habit of reporting their numbers, it is not possible to know just how far ahead Spotify is. The last time Amazon’s numbers were reported was in 2020 by Music Ally, when it reportedly had 55 million paying streamers. Apple was last reported in 2019 and had 60 million paying subscribers.
Spotify has become FC Barcelona football club’s official sponsor. The Camp Nou stadium, which superstar Lionel Messi used to call home, was changed to Spotify Camp Nou.