Spotify becomes first music streaming service to cross 200M paid subscribers

By Loudest Team
February 02, 2023
Spotify becomes first music streaming service to cross 200M paid subscribers

Audio streaming giant Spotify ended 2022 with better-than-expected user growth, but its latest quarterly loss widened amid investments in podcasting growth, among other factors. The company said on Tuesday that it ended the fourth quarter with 205 million premium, or paying, subscribers, up from 195 million as of the end of the third quarter and ahead of its own target, “aided by promotional intake and household plans.”

Spotify also disclosed that it hit 489 million monthly active users (MAUs) as of the end of December, up from 456 million at the end of September. “Net additions of 33 million represented our largest-ever fourth-quarter growth,” the firm highlighted.

Spotify did post an operating loss of €231 million (around $250 million) in this quarter. But that’s not a huge departure from the company’s past performance, given it has tended to prioritize growth over turning a profit on a quarterly basis. The figure is under its previous guidance of a €300 million (around $325 million) loss this quarter. Average revenue per premium subscriber now sits at €4.55 (around $4.93), a year-over-year increase of 3 percent, but slightly down compared to €4.63 (around $5.01) last quarter.

Today’s earnings release arrived without any more news about Spotify HiFi, a new subscription tier promising lossless CD-quality audio streaming that was announced at a big Spotify launch event almost two years ago. At this point there are suspicions that Spotify has had to rethink the feature in light of competitors Apple Music and Amazon Music now offering lossless streaming at no additional cost to subscribers.

Spotify is widely considered to be the largest music streaming service in the world, although comparative subscriber numbers aren’t easily available for competitors Apple Music and Amazon Music. The latest figures compiled by Music Ally suggest that Apple Music had around 60 million paying subscribers as of 2019, and Amazon Music had 55 million in 2020.

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