As part of its quarterly earnings announcement, Spotify said that it now has 100 million paying subscribers and 217 million users overall.
Spotify is the world’s biggest streaming music service and its user base has grown 26 percent year-over-year: As you may recall, the firm announced in May 2018 that it had 170 million active users, 75 million of which were paid subscribers. Six months later, the numbers jumped to 191 million active users overall, 87 million paid subscribers.
But the company’s financials have always been in the red: In the most recent quarter, Spotify lost $47 million on revenues of $1.68 billion, beating estimates. $1.5 billion of that revenue comes from paying subscribers, while $140 billion comes from ad-supported customers.
That divide between paying and ad-supported customers explains why Spotify has undergone expensive partnerships aimed at driving up the paying customer base further. It has had recent promotions with Google, in which it gave away free Google Home Mini smart speakers to Premium subscribers, and with Samsung. And it recently inked a deal with Hulu by which Premium subscribers get free access to the ad-supported Hulu tier.
Looking ahead, Spotify expects to grow its customer base at a similar pace to the previous year, and for the current quarter, it expects to see 107-110 million paid subscribers and 222-228 total users. Spotify plans to have up to 127 million paid subscribers by the end of the year and up to 265 million total users.