Reports Music

Spotify Q4 2019 Earnings Great Year for Premium, Less So for Ad Supported

Report by Mark Mulligan
Cover image for Spotify Q4 2019 Earnings
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The 20,000 Foot View: 2019 was another strong year for Spotify’s premium business, in which it saw off growing competition to retain its leading global market share. But it was also another year in which Spotify’s ad-supported business did not grow fast enough.

Key Insights

  • Spotify finished 2019 with XXX million subscribers, up XXX on 2018 and adding three million more new subscribers than it did in 2018 
  • Full-year (FY) 2019 premium revenue was also up XXX to XXX billion, but when churned-out subscribers are factored in, monthly average revenue per user (ARPU) fell from XXX FY 2018 to XXX FY 2019
  • Latin America and Rest of World contributed slightly less to global subscriber growth in 2019 XXX compared to XXX in 2018
  • Ad-supported user growth accelerated markedly in 2019, with XXX million new users added compared to XXX million in 2018
  • Spotify finished 2019 with XXX million ad-supported monthly average users (MAUs), with a reduced paid conversion rate of XXX was the breakout year for Rest of World, with the region increasing its share of ad-supported MAUs from XXX in 2018 to XXX in 2019, representing XXX of 2019 growth
  • Premium gross margin continued steady recovery to XXX in XXX 2019 while ad-supported gross margin headed in the opposite direction, dropping to XXX management – one of Spotify’s standout success stories – continued its long-term improvement in 2019, reaching XXX for FY 2019

Companies and brands mentioned in this report:  Spotify

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