In letter : Spotify this week announced that it ended the third quarter with 381 million monthly active users in total, an increase of 19% year-over-year and 4% from the previous quarter. Of these, 172 million are premium subscribers, which means they pay a monthly fee to use the service ad-free. The remaining 220 million monthly active users are ad-supported users, who are ad-supported but pay no monthly subscriptions. Of the two, the former is more valuable to Spotify.
On the finance front, Spotify’s ad-supported revenue is up 75% from the same period a year ago. The streaming giant ended the quarter with 2.5 billion euros ($ 2.9 billion) in total revenue, up 7% quarter-over-quarter and 27% year-on-year. the other.
Spotify said its podcast business performed extremely well in the third quarter. The platform ended the three-month period with 3.2 million podcasts in its library, adding that podcast’s share of overall hours consumed reached a new all-time high in the third quarter.
Looking ahead, the music streaming leader said it plans to end the year with between 400 million and 407 million monthly active users and up to 181 million premium subscribers in total. Total fourth quarter revenue is expected to be between 2.54 billion and 2.68 billion euros.
Earlier this year, Spotify announced that its users will have access to CD-quality lossless audio by the end of the year. We’re not quite ready to postpone the schedule just yet, but time is running out and if Spotify is to keep its promise, it will have to turn on HiFi soon.
Image credit Alexander Chatov