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Spotify reports strong growth with 16 per cent more paid subscribers

To entice more users to subscribe to its paid services, Spotify is experimenting with offering in-app lyrics as a premium-only feature. This move aims to enhance the premium experience for users.

Vishal Upadhyay Edited By: Vishal Upadhyay New Delhi Published on: October 24, 2023 18:03 IST
spotify news, spotify profitability, spotify paid subscribers, Spotify Q3, Spotify Q3 earnings, tech
Image Source : FILE Spotify reports growth with 16 per cent increase in paid subscribers

Music streaming giant Spotify has unveiled strong performance figures for its third quarter (Q3), showcasing a 16% year-on-year growth in its paid subscriber base, which now stands at 226 million. This growth exceeded expectations by adding 6 million paid users, surpassing guidance by 2 million.

According to the company, it also observed a remarkable 26% surge in monthly active users (MAUs), bringing its total MAUs to 574 million. This performance represents one of the company's most successful Q3 net additions in history.

Expressing his delight, Spotify CEO Daniel Ek stated, "Truly stellar quarter. Improving step by step. Thanks to all Spotify teams around the world."

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Reportedly, the company's financials look robust, with a quarterly profit of 65 million euros, equivalent to approximately $69 million. Spotify returned to profitability with an operating income of 32 million euros, or about $34 million, for the same quarter. In terms of revenue, the platform reported a notable 11% growth, reaching 3.4 billion euros.

This resurgence in profitability comes after Spotify raised premium subscription prices in various markets globally. For instance, in the US, the Premium Individual plan saw an increase from $9.99 to $10.99, while the Premium Duo plan rose to $14.99 from $12.99. The Premium Family plan is now priced at $16.99, up from $15.99, and the Student plan increased to $5.99 from $4.99.

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In summary, Spotify's Q3 results reflect an impressive growth in its user base and financial performance. With rising paid subscribers and an increase in profitability, the platform is continuing to make significant strides in the highly competitive music streaming industry.

Inputs from IANS

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