Reports Music

Spotify Earnings Q3 2019 Up on Most Counts

Report by Mark Mulligan
Cover image for Spotify Earnings Q3 2019
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The 20,000 Foot View:         2019 was a quarter of mixed fortunes for Spotify, with its subscriber base showing good, consistent growth, podcasts making a solid early showing, emerging markets demonstrating promise but ad revenue falling short.

Key Insights

  • Spotify hit        million subscribers in        2019, up five million on        2019 and in line with expected growth
  • Spotify added        million monthly average users (MAUs) in        2019 but grew its free user base significantly faster than paid, adding        million ad-supported MAUs
  • Spotify added two million subscribers in North America, one more than it did the prior year, reflecting the continued strength of the US streaming market
  • Rest of World is growing faster in free users than paid: Spotify added        million Rest of World ad-supported MAUs compared to        million subscribers, with the gap widening compared to        2018
  • The paid-to-free ratio was down in both of Spotify’s predominately emerging market regions, due to free user growth creating a wider subscriber acquisition funnel
  • North America and Europe added two million subscribers each, reaching        million and        million respectively
  • Premium revenue grew        year-on-year (YoY) to reach        million in        2019 while gross margin was down from        to       
  •        2019 was a weak quarter for ad-supported revenue, up just        million on        2019, representing        of all revenue, compared to        one year earlier        million Spotify users streamed podcasts on-platform in        2019, generating        million in revenue
  • Spotify churn fell slightly from        in        2019 to        making it the second successive quarter that Spotify has recorded its lowest to-date churn rate
  • MIDiA forecasts Spotify to hit        million subscribers in        2019

Companies and brands mentioned in this report:   Spotify

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