Spotify Gains 100 Million Paid Subscribers, But Still Lags Behind in Profits

Spotify Gains 100 Million Paid Subscribers, But Still Lags Behind in Profits

Business

Spotify, a Swedish audio streaming platform has announced it gained more than 100 million paid users across the world. The music streaming company achieved a significant milestone by raising premium users by 32% over the last year. Spotify said the achievement boosted using partnerships with Hulu, Samsung, and Google. Now the streaming service has 217 million monthly active users across the world along with an increased user base by 26% year-over-year. The figure also includes two million Indian users. Those customers joined the company after it launched the service in February. Spotify recently launched its service in other parts of the world including the Middle East and North Africa.

Analyst expected the music streaming company could have 218.6 million subscribers. While they estimated the company could have 99 million premium users. But at the end of the quarter, the subscribers were 100 million, up from 75 million year-over-year. Globally, the increased figures have placed Spotify ahead of closest rival Apple Music. Although, the company credits a substantial amount of its recent growth to generous promotions. Spotify prospered with a wide range of advertisements and offered a subscription with a minimal charge $1 per month. It also provided a free trial.

Despite the roaring success, Spotify reported another loss in the first quarter. It posted a net loss of $158.36 million for Q1, 2019. The company did say that ad-supported proceeds soared 24% year-over-year to $140.51 million. By the end of the fiscal second quarter of 2019, Spotify hopes to attract around 228 million monthly active users. It expects a rise in total premium subscribers up to 107-110 million. Spotify also said it hopes to fly total revenue between €1.51 billion to €1.71 billion. The music streaming company intends to have millions of paid users by the end of 2019. Despite gaining 33% rise in the first-quarter revenue, it is struggling to turn a profit.

Leave a Reply

Your email address will not be published. Required fields are marked *