steven36 Posted August 1, 2019 Share Posted August 1, 2019 Spotify added 8 million subscribers in the quarter that ended in June, slightly below the estimated 8.5 million figure, the streaming giant reported today. The top music streamer said it had amassed 232 million monthly active users and 108 million paying subscribers at the end of June, up from 217 million users and 100 million subscribers in the quarter that ended in March. Monthly active users include paying subscribers and non-paying users. “We missed on subs… That’s on us,” the company said. Paying subscribers include users who are enjoying the 30-day trial Spotify offers. Additionally, Spotify recently kickstarted a biannual campaign, which offered customers access to the premium service for $1. This, among other factors, has pushed its average revenue per user to €4.86 ($5.42) — down 1% since last quarter — the company said, adding that it expects the decline to continue in the low single digits for the rest of the year. Image and data: Spotify In comparison, Apple Music had 60 million paying subscribers as of June this year. (This also includes users who are part of Apple Music’s three-month free trial.) On the business side, Spotify said its quarterly revenue rose 31% from the same period last year to $1.86 billion, while operating expenses increased 4%. Its operating loss narrowed to $3.34 million, the company said — better than estimations of analysts who expected Spotify to lose about $62 million on sales of $1.83 billion. Additionally, Spotify revealed that it has reached an agreement with two of the four major record labels for licenses and is in active talks with the other two. It did not identify the labels. Spotify’s future profits — and losses — will depend on how its existing margins change during the negotiations with the music labels. The bulk of the revenue Spotify generates goes to the music labels. Every few years, they all meet to renew their agreements. The music streaming service, which has ramped up its podcast offerings with the acquisition of Gimlet Media, Anchor and Parcast, said its podcast audience is up 50% since the last quarter. Barry McCarthy, CFO of Spotify, said the company is still open to acquiring more podcasting businesses. Spotify, which earlier this year filed a complaint in Europe accusing Apple of stifling competition, did not talk about the iPhone-maker today. (Apple has refuted the accusation.) The company also did not speak much about India, where it launched its music streaming service in February. In late April, Spotify said it had amassed 2 million users in India. “Our newest market, India, performed well and in line with expectations,” it said today. Source Link to comment Share on other sites More sharing options...
Richwood Posted August 1, 2019 Share Posted August 1, 2019 108 million paying users and over 100 million more bringing in ad-revenue and they still can't deliver a profit. Link to comment Share on other sites More sharing options...
steven36 Posted August 1, 2019 Author Share Posted August 1, 2019 2 hours ago, Richwood said: 108 million paying users and over 100 million more bringing in ad-revenue and they still can't deliver a profit. Spotify pays high priced royalties to the music industry unlike YouTube does who fights against paying them high wages , Quote As far as returning fair value to the music community, Spotify delivers $20 to every $1 for YouTube, which means theirs is still a gap to overcome. 208 million people is not many considering there over 4 billion people on the internet and growing. whats not talked about very often is YouTube Is the most popular site for On-Demand music streaming because it has other stuff besides music on it . But research shows like 85% of YouTube users go there for music . Quote That adds up to about 1.3 billion people—several times larger than the total number of listeners who have signed up for a proper streaming platform That's way more than Apple and Spotify have combined YouTube dominates music streaming no one has ever got close to them unless they in China were they don't allow YouTube . There are over 800 million internet users in China alone and they over 800 million Ten cent users https://techcrunch.com/2018/10/02/tencent-music-ipo/ But still they dont have as many streaming music as YouTube do All about China and the music industry https://soundcharts.com/blog/chinese-recording-market-streaming Link to comment Share on other sites More sharing options...
orbystorm Posted August 1, 2019 Share Posted August 1, 2019 Guess China is going to take over world.In everything. Personally I like Spotify layout and smarts better than Apple music. Link to comment Share on other sites More sharing options...
PastJeff Posted August 2, 2019 Share Posted August 2, 2019 I'm a big fan of Spotify and I do hope that they keep continuing to provide a good service despite this setback. Heck recently they added Tool to the platform so that's something to be excited about. Link to comment Share on other sites More sharing options...
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