Spotify Achieves 236 Million Premium Users Milestone

Swedish music streaming powerhouse Spotify revealed its fourth-quarter earnings, boasting a significant milestone of 236 million Spotify Premium subscribers, a 4 per cent uptick from the previous quarter. This achievement comes as part of the December-ending quarter, alongside a 5 per cent rise in total monthly active users (MAUs), now totaling 602 million.

In a remarkable year-long journey throughout 2023, Spotify witnessed remarkable growth in both its user base and premium subscribers, adding 113 million and 31 million, respectively, setting new records for the Swedish music giant. Despite implementing its first price hike in 12 years, elevating the monthly subscription to $10.99 from the prior $9.99 in the US, Spotify continued its upward trajectory.

For the past year, Spotify amassed 3.7 billion euros (about $4 billion) in revenue, marking a robust 16 per cent surge compared to 2022. However, the company reported an operating loss of 75 million euros. Nonetheless, it emphasized a notable milestone with advertising revenues soaring to an unprecedented high of 501 million euros.

Spotify's strategic moves, including the price increase, bolstering subscriber numbers, and three rounds of layoffs in 2023, have contributed to narrowing its losses. Advertising revenue skyrocketed to 501 million euros in the quarter, hitting an all-time peak, as highlighted by the Wall Street Journal (WSJ).

Drawing from internal data, Spotify Wrapped, a year-end campaign offering personalized summaries of each user's listening habits, engaged a staggering 225 million users. Moreover, all paying customers in the United States now enjoy access to over 200,000 audiobooks, with up to 15 hours of monthly access per user.