Spotify breaks the milestone of 500 million active users

Spotify recorded a report variety of month-to-month lively customers within the first quarter: 515 million customers handed month-to-month the streaming service. A 12 months earlier, the corporate managed to attract solely 422 million MAU; a year-over-year (YoY) enhance of twenty-two %. Relative to it earlier quarter the rise is extra restricted, at 5 %.

By way of subscribers, the rise can be extra restricted, however Spotify additionally units a report in that space. The streaming service has by no means had 210 million subscribers earlier than; a rise of 15 % YoY. The rise additionally continues in Spotify’s quarterly income, which elevated YoY by 14 % to three billion euros. Regardless of the elevated turnover, the streaming large closes the quarter within the purple, with a lack of 156 million euros.

The loss is subsequently 38 million euros decrease than beforehand estimated. In accordance with the corporate, this is because of decreased advertising and marketing prices. As well as, the corporate laid off 6 % of its staff in January. This could make sure that prices are additionally decrease in the long run. On the similar time, Spotify CEO Daniel Ek expects an extra enhance within the variety of subscribers to 217 million within the second quarter.

By no means made a revenue

It’s hanging that Spotify has by no means made a revenue to this point. Regardless of the elevated turnover, the Swedes by no means managed to show a revenue. Music streaming analysis company MIDiA states that these revenue figures should be a number of years away. This has to do, amongst different issues, with the event of latest merchandise for the podcast and audiobook market.

A value enhance for Spotify subscribers is among the prospects to alter that course. Does the corporate dare to enterprise into this? The Washington Put up writes that such a call entails varied dangers, all of the extra so as a result of the financial state of affairs remains to be unstable. Exactly due to a lower cost, it appears to achieve attracting increasingly more customers. Rivals reminiscent of Apple’s Music service are invariably dearer: Apple Music, for instance, prices 10.99 euros a month, whereas Spotify writes 9.99 month-to-month out of your checking account.