×
You will be redirected back to your article in seconds

Spotify Reaches 87 Million Paid Subscribers

UPDATED: Spotify is up to 87 million paid subscribers, a 40% jump, the company announced in its third quarter earnings results today, and its total number of users is up 28% to 191 million. The company projected that its paid subscribers will be between 93 million and 96 million for the fourth quarter, while total monthly users will be between 199-206 million.

“Growth continues to be healthy across our Family and Student plans, and the strong retention characteristics of this base continue to drive churn lower,” the company said.

While its investment in China’s Tencent Music helped the company post its first-ever profit, it remains likely that the company will post another loss in the fourth quarter, and combined with slower-than-anticipated subscriber growth, the company’s stock dipped nearly 10% in the hours after the call.

By some accounts, Apple Music, which recently announced 43.5 million paid subscribers globally, has overtaken Spotify in that area in the U.S., although numbers are not publicly available.

Revenue for Q3 was $1.54 billion, a 31% year-over-year boost, and ad-supported revenue rose 28% to $162 million. Operating loss was $6.8 million, up 92%. The bulk of the revenue came from premium subscriptions while a smaller percentage is from its ad-supported service.

Spotify CEO/cofounder Daniel Ek and CFO Barry McCarthy spoke of the areas of growth the company is targeting, particularly podcasting. “We’re in the early days of podcast marketing,” Ek said. “Non-music content has an important place” in the company’s future plans.

He also declined to comment on a question from a reporter about whether it is in the running to buy into Universal Music Group, which is expected to put up a stake for sale in the coming months.

“I can’t make any comment on any deal negotiations at this point,” said Ek.

Ek also spoke of the company’s recent upgrades in its Spotify for Artists program, saying that 67,000 artists have submitted music for inclusion in playlists (with 10,000 added), and references the Music Modernization Act, and said that the company controversial moves toward direct distribution of artists music is not the same as being a recording label.

“We don’t view our strategy as being in opposition of our partners,” he said, claiming that its model means that “more artists can be successful and more labels can be successful. It’s not Spotify wins, labels lose.”

Europe now accounts for 36% of its monthly average users, while North America has 31% and Latin America 22%.

 

 

More Digital

  • Netflix Claims 'Fortnite' Is a Bigger

    Netflix Claims 'Fortnite' Is a Bigger Competitor Than HBO

    It may be mostly gamesmanship, but Netflix says it’s not really focused on rival streaming-video services from Amazon, Hulu, Disney, WarnerMedia or other big players as much as improving its own service to win share of consumers’ attention. “We compete with (and lose to) ‘Fortnite’ more than HBO,” Netflix told investors in its quarterly letter [...]

  • Netflix - Apple TV

    Netflix Turns in Record Q4 Subscriber Gains, Price Increase Weighs on U.S. Forecast

    Netflix is beating Wall Street expectations for international subscriber growth — but its recently announced price increase in the U.S. may have put a damper on its momentum in the States. For the fourth quarter of 2018, Netflix reported 1.53 million paid net adds in the U.S. and 7.31 million internationally, to end the year [...]

  • Bird Box

    'Bird Box' Has Been Watched by 80 Million Subscribers, Netflix Says

    Netflix used its Q4 2018 earnings report Thursday to give us a rare update on some of its audience numbers: The company estimates that its horror-thriller “Bird Box” will be viewed by over 80 million member households in the first four weeks following its release. “We are seeing high repeat viewing,” company executives wrote in [...]

  • Crackle Latin America

    Sony Shuts Down Crackle Latin America Business

    Sony Pictures Television is folding the Crackle Latin America subscription VOD service, which has 400,000 subscribers across 17 countries, after concluding the business isn’t economically viable. Crackle Latin America first launched in April 2012 as an ad-supported streaming service — like the U.S. version of Crackle — before switching in 2016 to a subscription video-on-demand [...]

  • Google Home entryway

    NPR Has Turned 'Wait Wait... Don’t Tell Me' Into a Game for Smart Speakers

    NPR has turned its popular “Wait Wait… Don’t Tell Me!” news quiz show into an interactive game for smart speakers: Owners of speakers powered by Google’s Assistant or Amazon Alexa will be able to play along to questions about the news of the week. Just like the radio show, the quiz is being hosted by [...]

  • WARNING: Embargoed for publication until 00:00:01

    BritBox Subscribers Hit Half a Million

    The number of subscribers to BritBox has hit 500,000, the streaming service said Thursday. The platform, launched as a collaboration between BBC Studios and ITV, is designed to offer U.S. and Canadian viewers the best of recent and classic British television content. The streaming service launched in the U.S. in March 2017 with a host of [...]

  • Andy Yeatman - Moonbug

    Andy Yeatman, Former Netflix Head of Kids Content, Lands at Startup Moonbug (EXCLUSIVE)

    Andy Yeatman has joined children’s entertainment startup Moonbug Entertainment to oversee North America operations, after he exited Netflix a little over a year ago. Moonbug, dual-headquartered in London and L.A., has set out on a mission to acquire “fun and safe” kids’ entertainment properties and develop new content and businesses based on them. Yeatman, as head [...]

More From Our Brands

Access exclusive content