Music streaming service Spotify revealed in its third-quarter 2020 earnings it now has 320 million monthly active users and 144 million paid subscribers globally, a 29 and 27 percent increase respectively from the same period a year ago. According to TheVerge, successful marketing campaigns in India and the launch of the service particularly in Russia and 12 nearby markets contributed to this growth.
Spotify is now the undisputed music streaming service in the world with Apple and Amazon trailing far behind. Amazon Music reported a total of 55 million subscribers in January and nearly all of them were paid subscribers, The Financial Times reported. Fellow rivals Apple does not have a free plan but only promotional and trials; it reported a total of 60 million paid subscribers last year.
Spotify recorded revenue growth of 14 percent which translated to €1.98 billion but the company still made a €101 million loss during the third quarter in 202; that is down from a €241 million profit from the same period last year as reported by The Wall Street Journal. This loss can be attributed to Spotify offering discounts on its plans in order to attract new users. This contributed to a 10 percent drop in revenue per user €4.19 compared to the same period last year.
Spotify is ramping up growth in its podcast department as well and the company recently added support for video podcasts on its free and paid plans. There is now a total of 1.9 million podcasts to listen to on the platform, a 26.67 percent increase from the 1.5 million it was in the second quarter. Not only has the number increased, the engagement rate of monthly users is now 22 percent up from 21 percent in the second quarter. In English-speaking countries, The Joe Rogan Experience is now the most podcast and Spotify plans to make it exclusive to its platform before the year ends.