The Swedish music streaming service Spotify has long and firmly held its position as the leader of the music streaming market worldwide. There are many reasons for this. First of all, the reason for success was the effective marketing policy of the company.
Spotify’s second fiscal quarter was, according to the company, the best quarter in its history in terms of monthly active user growth. The streaming music company claims it currently has 433 million active users. Thus, on an annualized basis, the growth is 19%. Also 11 million more users compared to the first quarter of 2022. The number of subscribers in the second quarter also increased by 14% compared to the same period of the previous year, reaching a total of 188 million premium users on the platform.
These good results are partly due to the growth in podcasts, which reached 4.4 million programs in the second quarter of 2022, up from 4 million in the first quarter. However, recent setbacks are forcing the company to change course to continue its commitment to non-music content and avoid a future decline in audio programming. Spotify, in particular, is currently facing the departure of celebrities who have until now had exclusive contracts on the platform. Among them are the Obamas, who decided not to renew their contract with the company in 2019 and subsequently signed with Audible.
Spotify also lost Courtney Holt, who until April of this year was Spotify’s vice president of global podcasting. Holt has, in fact, been one of the people in charge of recruiting those who have been successful in pushing the podcast field so far. Among them are Joe Rogan, who continues to work on the platform, as well as Barack and Michelle Obama.
The Swedish firm’s decision to continue pushing its non-music content field is to bet on audiobooks. This is also happening with two key acquisitions.
One is Findaway, an audiobook platform that will offer the company the tools they need to “rapidly expand their audiobook catalog and innovate consumer experiences.
Spotify has also acquired Sonatic, which specializes in text-to-audio conversion using artificial intelligence.
In terms of revenue, Spotify posted a €125 million loss in the second quarter of 2022. However, the average revenue per user (ARPU) was up 6% year-over-year. They are currently 4.54 euros. Thanks in part to higher prices and more multi-user accounts.
On the other hand, the results for monthly active users and premium subscribers exceeded the company’s expectations. Spotify predicts an increase in monthly active users by 5 million people. As for the number of paid subscribers, Spotify expected the number to reach 187 million, one million less than what was announced. At this rate, it’s not surprising if the company reaches 200 million active paying users by the end of the year.
Spotify also continues to announce new features aimed at increasing both monthly active users and subscribers; the two most important data for a company. The streaming music platform has announced the arrival of Spotify Live, an independent app that aims to mimic Twitter Spaces in a certain way, allowing users to listen live to their content creators or even participate in debates.