Spotify hit 205 million paying subscribers on the finish of final yr, the music streaming service stated Tuesday in its fourth-quarter report, surpassing a serious milestone.
The streaming service stated 489 million individuals now use Spotify a minimum of as soon as a month, together with individuals who pay attention at no cost with promoting. That is up 20% from a yr earlier and marks a report improve in web new listeners. By the top of March, Spotify expects its complete lively listeners depend to hit 500 million.
The expansion in each paid and complete customers was higher than Spotify predicted in October, when it anticipated 202 million paying members and 479 listeners.
The most recent figures reiterate Spotify’s dominance in subscription music worldwide. Apple Music, thought of its closest competitor, does not routinely disclose its paid membership and hasn’t provided an replace in additional than three years, obscuring simply how large Spotify’s lead could also be. Again in June 2019, Apple stated its service had 60 million subscribers. (In response to music business researcher Midia, Apple held about 1% of the world’s subscription music market final yr, and Spotify’s share is greater than double that.)
Spotify, in contrast to Apple Music, has a free tier that lets anybody hearken to music with promoting. Apple has by no means disclosed its variety of month-to-month lively customers; nearly all individuals who use Apple Music are subscribers.
Shares in Spotify had been up 4.4% at $104.35 in current premarket commerce. By way of Monday’s shut, Spotify’s inventory has dropped greater than 40% within the final yr.
Trying forward, Spotify predicted that it’s going to have 207 million paid subscribers by the top of March and that its month-to-month lively customers will improve to 500 million.
Within the fourth quarter, Sweden-based Spotify reported a lack of 270 million euros ($293.5 million), or 1.40 euros a share, widening from a lack of 39 million euros, or 21 cents a share, a yr earlier. Income rose 18% to three.17 billion euros within the quarter.
