Spotify secured a big milestone this quarter, reaching a complete of 700 million month-to-month energetic customers (MAUs) even after elevating subscription costs in key world markets.
The streaming firm introduced its third-quarter earnings on Tuesday (native time), sharing an 11 % year-on-year improve in MAUs to 713 million. The service’s premium subscribers grew 12 % from the earlier 12 months to 281 million.
The corporate reported quarterly income of 4.27 billion euros ($4.9 billion), a 7 % rise from the identical interval final 12 months, with working revenue reaching 582 million euros, reflecting a 43 % surge. Its internet revenue turned optimistic from the earlier quarter’s loss, hitting 899 million euros.
The soar in customers was pushed each by the subscription charge improve and a profitable world advertising and marketing push, with signups outpacing the corporate’s expectations.
The elevated subscription charges have contributed to boosting its income. In August, Spotify raised its month-to-month premium subscription worth from 10.99 euros ($12.63) to 11.99 euros throughout main markets, together with Europe, Asia-Pacific, Africa and the Center East.
The streaming service has been increasing its enterprise, lately pinpointing video content material and video podcasts as future progress areas. In simply the third quarter, it rolled out 30 main characteristic updates, together with synthetic intelligence (AI)-powered content material suggestions, playlist mixing instruments and an in-app direct messaging service.
Final month, the corporate signed a deal to supply its video podcast content material and different video options to Netflix.
Spotify has additionally been placing effort into increasing its presence in Korea’s music streaming market.
Since launching an ad-supported free plan in October final 12 months in Korea, the corporate has continued to see fast progress, reaching 4.24 million MAUs in August with a 168 % year-over-year improve.
It surpassed native rivals, reminiscent of Genie Music, Flo and Naver Vibe, solidifying its place because the third largest platform after YouTube Music and Melon.
The corporate additionally introduced a strategic partnership with Naver on Tuesday to carry its music and podcast expertise to customers throughout Naver’s platforms.
By the partnership, the 2 firms will work collectively to make Spotify’s in depth library of greater than 100 million tracks and seven million podcasts extra handy to entry via Naver’s companies.
“Since launching in Korea, Spotify has been targeted on connecting followers with the music and creators they love via our world-class personalization and discovery options,” Gautam Talwar, Spotify Asia-Pacific normal supervisor, stated in a press launch.
“Partnering with Naver, whose companies are woven into the material of on a regular basis digital life in Korea, allows us to carry these experiences even nearer to listeners, serving to them discover the precise music for each temper and second.”
