Spotify Now Has 356 Million Users

Posted on April 28, 2021 by Paul Thurrott in Spotify with 4 Comments

As part of its quarterly earnings report, Spotify this week said that it now has over 356 million monthly active users, up 24 percent year-over-year.

“I’m pleased with the continuing momentum we are seeing across many aspects of our business this quarter, including our subscriber growth,” Spotify founder and CEO Daniel Ek wrote in an open letter. “Several metrics, like subs, revenues, gross margin, and ARPU (average revenue per user) came in a little higher, while MAU (monthly average users) came in lower — but still well within our range.”

Spotify posted a net income of $23 million on revenues of $2.1 billion for the quarter ending March 31, 2021. Its subscriber base is split between 158 million premium subscribers and 208 million ad-supported subscribers. But the premium subscribers are far more lucrative, as they brought in $1.93 billion in revenues compared to $216 million for the ad-supported subscribers.

Of course, Spotify has what we’ll call an “Apple problem,” where the consumer electronics giant offers a competing service that isn’t hampered by the 30/15 percent vig that Apple inflicts on its developers. And so Spotify is raising the prices of its various offerings over the next month or so.

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Comments (4)

4 responses to “Spotify Now Has 356 Million Users”

  1. Chris_Kez

    To be fair, Spotify also has a Google problem (their vig) and a record label problem (licensing costs). I'm glad to see Spotify doing well, but I worry about their long-term health even without the Google and Apple tax. Their costs have a floor set by record labels (who are famously difficult) while their revenues have a ceiling based on how much people will reasonably spend on access to music (can that get to $15 per person?). They are a digital company that doesn't benefit from zero marginal costs the way Facebook and Google do.

    • IanYates82

      In reply to Chris_Kez:

      Not true

      I'm a YouTube music user, but still had the Spotify app on my Android phone.

      So I just started it, signed in to my old never-been-premium account. Clicked the button to upgrade to premium....

      They host a web page inside the app where I can choose PayPal, credit card or even throwing it on to my phone bill.

      No Google vig there... No restriction on them opening a page to a processing method where they don't lose 30%

      I wish this direct comparison was shown between how they're *forced* to do it one way in the Apple ecosystem and have the *option* of doing it either way in other ecosystems.

      No one's saying Apple can't offer their payment method, or even force apps to ensure it's supported, but users and devs are railroaded by the app platform on the Apple side, to the point where the app dev can't even tell the user - even without a hyperlink or any automation - that the user has the option of signing up external to the app and helping the app dev get paid more

      That's exploiting your captive audience and dressing it up as Apple knowing better.

      • IanYates82

        In reply to IanYates82:

        That's not targeted at you Chris Kez... Might have come across a bit cranky ?

        Just I find the whole "it's for the user's own good" thing awfully false, and have seen others on here defend it saying users can switch platforms if they don't like it.

        The fact people have spent money on an app - possibly many - in platform A means it's quite expensive to move to platform B - another reason why Apple wants to control that payment since it helps keeps users anchored

  2. JH_Radio

    if a user is on a iPhone and they want to do something in Kindle such as buy a book, they can't. Right? You can't use the app to buy this. That's beyond stupid to me and I don't care who fixes it, but someone should. I mean what good is only half an app? OK, so by not doing this companies don't have to pay Apples Google 30% fee. but this just makes it more difficult on the average user. Speaking of Spotify, where's the lossless already?

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