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

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