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