Published: Thu, August 01, 2019
Life&Culture | By Sue Mclaughlin

Spotify slips after not adding as many paid subscribers as hoped

Spotify slips after not adding as many paid subscribers as hoped

Swedish music streaming app Spotify now has 232 million monthly active users (MAUs) globally, a 29 per cent increase year-on-year (YoY), along with 108 million premium subscribers which is also 31 per cent (YoY) growth. "We also launched a new product feature called Your Daily Drive to better serve the in-car listening experience that intertwines up-to-the-minute news from partners including NPR, the Wall Street Journal, and the New York Times with music specific to your listening history".

More notable recent Spotify Technology S.A. (NYSE:SPOT) news were published by: Finance.Yahoo.com which released: "What Should You Know About HNI Corporation's (NYSE:HNI) Future?" That figure was weaker than Spotify expected but keeps it well above its closest competitor which had 60 million subscribers.

The operating loss for the quarter reduced to Euro 3 million, also better than expected, as the increase in costs was limited to 4 percent.

At its Q2, 2019 earnings call on Tuesday, Spotify announced that its music streaming service now has 108 million premium subscribers, up 31 percent from the same period past year.

Spotify is the global leader in paid music streaming by a wide margin.

For the third quarter, Spotify expects a paid subscriber base of 110 million to 114 million and a total base of 240 million to 245 million monthly active users. In comparison, Spotify had earlier forecast monthly active users within the range of 222 million to 228 million.

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Podcasting, an area that could increase revenue, is growing for Spotify. The platform's podcast audience also grew by 50 percent from the first quarter and remains a major part of its plans for the future.

Since last quarter, all these factors have pressed its average revenue per user to €4.86 ($5.42) - down 1%.

The streaming service is available in 79 countries, including the Middle East, North Africa and India, offering its global community of 232 million music fans access to more than three billion local and worldwide playlists.

Shares of Spotify were up 37% year-to-date through Tuesday.

It should be noted, however, that Spotify's total number includes those that signed up during a promo that the company ran from mid-May thru June, offering three months of Spotify Premium for $0.99 or equivalent.

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