Spotify is expanding features and raising subscription prices to drive paid user and revenue growth amid economic challenges.
Streaming giant's profits
Paid subscriber growth
In the first quarter of 2024, the number of paid subscribers to the music streaming service Spotify increased by 14% compared to last year, reaching 239 million. The total number of users reached 615 million, while a year earlier there were 617.9 million. By comparison, YouTube Premium and Music have 100 million subscribers, and Apple Music's exact numbers were last revealed in 2019 at 60 million paying users.
Financial Highlights
Spotify's total revenue grew 20% to $3.8 billion, and operating income amounted to $179 million, exceeding analysts' forecasts. The company raised its subscription prices last year and is planning another increase soon - by about $1-2 per month in five markets, including the UK, Australia and Pakistan.
New Directions
Spotify is expanding its offerings with new audiobook pricing. The service introduced audiobook subscriptions for the first time in 2023, and more than 25% of users who accessed this offer have already used it at least once. In addition, the company is integrating artificial intelligence-based features to enhance the value of its offerings for subscribers.
Business restructuring
Spotify made three waves of staff cuts last year, laying off a total of 2,300 employees. These measures were taken as part of optimizing business and increasing efficiency in conditions of economic instability.
Glossary
- Spotify is the world's leading streaming service for music and podcasts.
- YouTube Premium and Music are paid subscriptions to YouTube services that provide access to music and videos without advertising.
- Apple Music is a music streaming service from Apple.
Links
- Spotify Paid Subscriber Growth Data
- Statistics about YouTube Premium and Music subscribers
- Information about the planned price increase on Spotify
Answers to questions
What new features have been added to Spotify?
How did Spotify's paid subscribers change in the first quarter of 2024?
How many total subscribers used Spotify in the first quarter of 2024?
How did Spotify's revenue change in the first quarter of 2024?
What plans does Spotify have for increasing subscription prices?
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Discussion of the topic – Spotify increases its number of paid subscribers to 239 million: new price hike is coming
Streaming giant Spotify has added new features, including AI, to attract more paying users. In the first quarter of 2024, Spotify's paid subscribers grew 14% year-over-year to 239 million, according to Bloomberg.
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Katarina
Wondering how Spotify's new AI features will impact the music listening experience? I hope they will help find new interesting artists 🎵
Günther
I'm a little skeptical about audiobook subscriptions from Spotify. Are they really needed when there are specialized services for this? 🤔
Pierre
Of course, price increases are never fun, but if the new features are useful, I'm willing to pay more. After all, Spotify makes a great product 👍
Виктор
Have you noticed how quickly Spotify's paid subscriber base is growing? It seems people are willing to pay for quality service. A smart marketing move with new AI features.
София
I recently tried an audiobook subscription from Spotify and it has been a godsend for me! I listen to them while commuting to work 🚗📚
Маркус
Has anyone tried the new AI features? I wonder how useful they really are for music recommendations? 🤖🎶
Барбара
Eh, it’s a pity that prices will be raised again soon. But, on the other hand, Spotify is constantly evolving and offering new opportunities. Might be worth it 💰
Эрнст
All this innovation with AI and audiobooks is just a marketing ploy to get us to pay more 😒 I remember when Spotify was free!
Франческа
Is it just me, or is Spotify becoming more like Netflix? First music, then podcasts, now audiobooks... I wonder what will happen next? 🤔📚
Лукаш
I'm glad Spotify is investing in new technologies like AI. I hope this will help me discover new cool music 🤘🎸
Ярослава
Guys, are you aware that Spotify is laying off employees? I think this is a bad sign for the company 😔
Алессандро
Yes, the numbers are impressive! Spotify clearly dominates the audio streaming market. It will be interesting to see how they develop their service further 👀
Наталья
I still use Spotify for free, but it might be worth considering a paid subscription. Advertising can sometimes be very annoying 😩
Хавьер
Hey, have any of you listened to podcasts on Spotify? I recently discovered a couple of really cool shows! 🎙️
Эрнст
All these new features and subscriptions are complete nonsense! I'll stick with good old Spotify without all the bells and whistles. And you, young people, buy into this advertising 🙄