Music streaming giant, Spotify blazed past 150 million premium subscribers in its Q4 2020 earnings report. The company now has 155 million subscribers and 345 million monthly active users, a 24 per cent and 27 per cent increase respectively year-over-year. Last quarter, the company reported 144 million subscribers and 320 million monthly active users.
Spotify’s biggest increase came from ad-supported monthly active users which was up by 30 per cent to 199 million. Its ad revenue was also up, in which it accounted for 13 per cent of its total revenue. Despite this, the average revenue per user fell by 8 per cent to €4.26 (around $5.13) compared to a year ago, The Wall Street Journal reports. Spotify launched in new markets like Russia and India last year, and it discounted its plans to attract new subscribers, this affected its revenue per user.
Spotify recorded a total loss of €125 million, a positive since it recorded a loss of €209 million the year before. Spotify rarely posts profits because the company continues to invest in its growth, The Wall Street Journal notes. Spotify recently bought podcast hosting and ad company Megaphone for $235 million, the company has also acquired the services of Prince Harry and Meghan Markle, and Ava Duvernay for its podcast business. Spotify now boasts more than 2.2 million podcasts on its platform with listeners nearly up by 100 per cent compared to a year ago.
The company recently began offering audiobooks with recordings of Frankenstein, and Narrative of the Life of Frederick Douglass, an American Slave available on its service.