What you need to know
- Spotify has today posted its latest financial results.
- It now has nearly 300M monthly active users.
- It also has 138M paying subscribers.
Spotify has today posted its latest financial results, confirming that it now has nearly 300 million monthly active users and 138 million paying subscribers.
As mentioned, the results show Spotify now boasts 299 million monthly active users, a 29% increase on last year. It also now has 138 million Premium Subscribers, up 27% on this time last year. Both of those figures meet the top end of Spotify's Premium guidance.
Reflecting on the pandemic, Spotify says that listening activity has now returned to pre-COVID levels everywhere except in Latin America, where listening is down around 6%.
Despite growing figures, Spotify's ad revenue fell by 21%, as COVID-19 continues to impact the sector. As CNBC notes, Spotify made a net loss of around 356 million euros, worse than analysts had feared. This wider loss was "due mostly to social charges", taxes paid in Sweden. Spotify says the "higher-than-expected" charges relate to strong gains in Spotify's stock price and came in 126 million euros higher than planned. Spotify is required to pay a 31.42% to the Swedish government on any profit an employee makes when exercising stock options or vesting restricted stock units.
What does active user mean on Spotify? I literally play only about 1 song a month using Spotify for free, am I counted as an active user?
I have tried Spotify multiple times and have not been impressed with the algorithm as well as the sound quality in my car, and I have a 10 speaker, premium surround sound system. At one point i was commuting over 45 minutes each way. Every so often I will check it out again to see if it has improved. Don't see paying for something unless the basic features are done well.
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