Gegli news - Spotify Expects to Hit 450 Million Listeners by October -
Spotify expects its active listener base to hit 450 million by October, the music streaming service said in its second-quarter earnings report Wednesday, after finishing the period with 188 million subscribers and 433 million active listeners who visit the service at least once a month.
Even as Spotify girds for the possibility of economic slowdown, "it's hard to be anything but optimistic given what I'm currently seeing," CEO Daniel Ek said during an earnings call to discuss results.
The latest figures reiterate Spotify's dominance in subscription music around the world. Its chief competitor, No. 2 service Apple Music, doesn't routinely disclose its paid membership and hasn't offered an update in more than three years, obscuring just how big Spotify's lead may be. Back in June 2019, Apple said its service had 60 million subscribers. (According to music industry researcher MIDiA, Apple holds about 15% of the world's subscription music market; Spotify's share is more than double that.)
Looking ahead, Spotify predicted it will reach 194 million paid subscribers by the end of the third quarter.
Sweden-based Spotify reported a loss of 125 million euros ($127 million), or 85 cents a share, widening from a loss of 20 million euros, or 19 cents a share, a year earlier. Revenue climbed 23% percent to 2.864 billion euros in the quarter. Analysts surveyed by Refinitiv estimated a 63 cent loss on 2.813 billion euros in revenue.
Spotify stock was up 7.7% at $112 a share in recent premarket trading.
Spotify is a proprietary Swedish audio streaming and media services provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. It is one of the largest music streaming service providers, with over 433 million monthly active users, including 188 million paying subscribers, as of June 2022.Spotify is listed (through a Luxembourg City-domiciled holding company, Spotify Technology S.A.) on the New York Stock Exchange in the form of American depositary receipts.
Spotify offers digital copyright restricted recorded music and podcasts, including more than 82 million songs, from record labels and media companies. As a freemium service, basic features are free with advertisements and limited control, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions. Spotify is currently available in 180+ countries, as of October 2021. Users can search for music based on artist, album, or genre, and can create, edit, and share playlists.
Spotify is available in most of Europe, as well as the Americas and Oceania, with a total availability in 184 markets. The service is available on most devices including Windows, macOS, and Linux computers, iOS and Android smartphones and tablets, smart home devices such as the Amazon Echo and Google Nest lines of products and digital media players like Roku.
Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its total revenue to rights holders (often record labels), who then pay artists based on individual agreements. According to Ben Sisario of The New York Times, approximately 13,000 out of seven million artists on Spotify generated $50,000 or more in payments in 2020.
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