Spotify Q3 2020 Earnings The Shift to Free
The 20,000 Foot View: With three quarters of 2020 gone, Spotify has prospered during the most challenging of times, with consistent growth across most metrics. 2020 saw a slight deviation from the script though, with ad-supported in the driving seat, especially in emerging markets.
- Spotify added million monthly active users (MAUs) in 2020 to reach million MAUs, compared to the million it added one quarter earlier. This was higher than the million and million added in and finished with million subscribers, one million above MIDiA’s start-of-year forecasts. It added fewer subscribers in (six million) than it did in (eight million) but it increased by more year-on-year (YoY) million)
- Ad-supported was Spotify’s strongest category in adding million ad-supported MAUs to reach million, more than double the seven million it added in and million up on 2019
- Spotify’s regional 2020 growth was one of two very different stories across paid and free. of Spotify’s quarterly paid user growth came from Europe, while of free user growth came from Rest of World
- Spotify recorded billion of premium revenue in 2020, up just on 2020 but YoY. Spotify’s steady premium gross margin improvement slowed in 2020, reaching and brands mentioned in this report: Spotify