Spotify Q3 2020 Earnings The Shift to Free

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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.

Key Insights

• 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       
• Spotify 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       

Companies and brands mentioned in this report: Spotify