Spotify Adds Subscribers, Advertising Revenue Rises on Podcasts – The Hollywood Reporter
Music-streaming big Spotify grew subscribers and whole customers, together with promoting income, helped by podcasts, in its third quarter.
It ended September with 172 million premium, or paid, subscribers, up from 165 million as of the top of the second quarter. The end result was in keeping with the vary of 170-174 million that the corporate had beforehand forecast it could attain.
Spotify additionally hit 381 million whole month-to-month energetic customers (MAUs), up from 365 million within the second quarter and close to the highest finish of its steerage vary of 377-382 million, the Wednesday earnings replace confirmed.
Premium subscriber traits within the third quarter have been helped by a promotional take a look at, mentioned Spotify, led by CEO Daniel Ek. “We examined a Premium promotion within the third quarter, which aided the standard seasonality of our enterprise and likewise helped offset the robust comp from the profitable launch of Russia and surrounding territories within the third quarter final 12 months,” it mentioned. “Our common month-to-month Premium churn price for the quarter was down sequentially and up year-over-year in opposition to final 12 months’s historic low. We’re happy with the traits in churn and proceed to count on full 12 months 2021 churn to be down versus 2020.”
Stockholm-based Spotify reiterated its earlier year-end 2021 projection that requires 177-181 million premium and 400-407 million MAUs.
Spotify’s quarterly promoting income, which had returned to development within the third quarter of 2020 following a coronavirus pandemic hit, continued to rise, leaping 75 % in contrast with the year-ago interval, helped by development in podcasts. “Since launch, the variety of podcasts in our community has grown by greater than 50%, and practically one in 5 Spotify advertisers are already taking part,” the corporate mentioned.
Podcasting has been a key focus for Spotify, which ended September with 3.2 million podcasts on its platform, up from 2.9 million as of the top of June. “Our podcast enterprise was pushed by sturdy double-digit year-over-year development at current Spotify studios (The Ringer, Parcast, Spotify Studios, and Gimlet) together with the (podcast advert firm) Megaphone acquisition and the unique licensing of the Joe Rogan Expertise, Armchair Skilled with Dax Shepard and Name Her Daddy,” the agency mentioned.
Spotify swung to a third-quarter revenue of €2.0 million ($2.3 million) from a year-ago lack of €101 million. Quarterly income grew 27 % to €2.50 billion ($2.90 billion). Common income per person for Spotify’s subscription enterprise rose 4 % to €4.34 ($5.03), reversing declines with the assistance of worth will increase for its household plan in a number of markets, together with the U.S.
