Reports Music

­­­Spotify Q2 2021 earnings Slowdown arrives

Report by Mark Mulligan
Cover image for ­­­Spotify Q2 2021 earnings
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The 20,000 Foot View:  The growth headwinds that appeared in            2021 manifested in a pronounced user growth slowdown in            with ad-supported users hit hardest. Spotify has been through lean growth periods before, but what is different this time is that streaming’s new players are growing at pace. Slowing down as your competitors accelerate is never a good thing. The net result is that the labels’ dependency on Spotify is beginning to lessen.

Key Insights

  • User growth            Spotify added nine million monthly            users (MAUs) in            2021 to                       million MAUs, compared to            million                       2021 and            million in            2020
  • Spotify’s podcast            base growth has slowed also,            largely in line with the            MAU base since            2020
  • Subscriber growth            better, adding seven million to                       million, following net additions of            three million the previous quarter
  • Europe saw            largest number of net subscriber                       million quarter-on-quarter (QoQ),            million year-on-year           
  • Latin America            numbers only recovered to            2020                       million) with annual growth slowing            compared to            2020
  • Rest of            quarterly subscriber additions were under            million, compared to nearly two            in            2021 and a little            one million in            2020
  • Revenue growth            more positive, reflecting improving monetization.            revenue was up            million on            quarterly basis and ad revenue            up            million, compared to a            of            million in            2020
  • The major            had a strong            2021, registering            revenue growth on            2020 to                       billion. Spotify’s streaming revenue growth                      
  • Spotify’s share            streaming revenue growth fell from                       2017 to just            in            2021

Companies and brands mentioned in this report: Amazon Music, Audiomack, Clubhouse, Facebook, Greenroom, Instagram, Peloton, Shorts, Soundcloud, TikTok, WMG, YouTube