Spotify Q2 2019 Earnings Mature Markets Still the Engine Room of Growth
Our clients have full access to all of our reports. Clients can log in to read this report. Click here to become a client. Alternatively, you can purchase this individual report.
The 20,000 Foot View: 2019 was another solid quarter for Spotify, adding the same number of subscribers it typically does in promotional quarters. Core metrics such as churn and average revenue per user (ARPU) all moved in the right direction, but Spotify remains out of contract with two major label partners and needs emerging markets’ subscriber growth to start picking up the slack before mature western markets slow.
Key Findings
- Spotify hit subscribers in 2019, a rise eight million on 2018 and million from one year earlier the same annual increase as
- Ad-supported monthly users (MAUs) were up million 2018
- Spotify’s paid rate rose half a point 2019 to reach
- Latin America ‘Rest of World’ contributed of subscriber growth in 2019. These will need to contribute more moving forward
- Ad-supported MAUs slightly from 2019 in North and Latin America but grew in Rest of World to million
- Premium ARPU up slightly to while ad-supported reached
- While emerging will be key to subscriber they will dent ARPU and revenue growth
- Europe consolidated position as a majority premium for Spotify in 2019 with paid conversion rate, up from 2019
- Premium revenue to reach million in 2019, gross margin recovering to the level it was at one earlier
- Net premium growth of million was just more than in 2018
- Ad-supported revenue up on 2019 to reach in 2019
- Podcasts are yet delivering meaningful revenue
- Spotify churn to in 2019, its lowest yet, having been at one previously
- Artists representing majority of streams rose from 2016 to over in 2019
Companies and brands mentioned in this report: Anchor, Gimlet, Parcast, Spotify, Warner Chappell