Spotify Report on Third Quarter Raises High Expectations
Zachary Kandell / 01 Nov 2021
Recently Spotify informed its users about their latest earnings. The number of paid subscribers in the past quarter was 165 million, while there were about 365 million active users. The report shows that the figures rose to 172 million paid users and 381 active users of the platform. Compared to the same period in 2020, the figures increased by 19%t. This growth met Spotify’s expectations, and the company shared information on their blog.
General Spotify Earnings Statistics
This information reveals that Spotify remains the most popular platform for streaming music. Competitors, like Apple Music or YouTube Music, lag far behind in the number of paid subscriptions, according to Music Ally. Spotify is expected to increase the number of active users to 400 million by the end of 2021.
The average income from Spotify clients also increased by 4% compared to the same period in 2020. Spotify managed to increase profits significantly, and the third quarter brought the platform about 2,9 billion dollars. This is 27% higher than the expected result, which is unusual due to the company’s lack of emphasis on quarterly profits. The net profit for the music giant was about 2.3 million dollars.
Service Improvement Brings Benefits
Sales of advertisements increased sharply by 75% and brought €323 million in income. According to The Wall Street Journal, Spotify’s total revenue increased by 3 percent with advertising revenue. The number of podcasts has also increased, allowing the company to call itself the most popular platform for podcasts among US users.
Users are still waiting for the new feature Spotify HiFi to arrive, so it is safe to assume that the profit increase is not due to big events or launches. On the other hand, the company focused on improving its service and added useful features such as interactive questions and answers, the "Enhance" function, and more. What do you think about this report? You can leave your comment below and share the article if you liked it!