- Spotify Reaches 165 Million Paid Subscribers Ahead Of Apple Music.
- The company’s total monthly active users rose 22 percent to 365 million during Q2 2021.
- Spotify shares were up 3.5% in premarket trading.
Spotify Technology reported a better-than-expected rise in second-quarter revenue as the music streaming company hit 165 million paid subscribers for its premium service, sending its shares up nearly 5 percent.
The global leader in the sector, with double the number of subscribers of nearest rival Apple Music, Spotify has launched in regions like the Middle East countries, and North Africa in recent months, seeking to fuel the next stage of its development as it continues to price aggressively in the developed world. Spotify’s total monthly active users rose 22 percent to 365 million during Q2 2021.
The music streaming service, which has ramped up its podcast offerings with the acquisition of Gimlet Media, Anchor, and Parcast, said its podcast audience is up 50% since the last quarter. Barry McCarthy, CFO of Spotify, said the company is still open to acquiring more podcasting businesses.
Total revenue was €2.33 billion, or about $2.75 billion. That’s an increase of 23% YOY. Going forward, Spotify is forecasting 170 million to 174 million paid subscribers by the end of Q3 2021 and 177 million to 181 million paid subscribers at the end of Q4 2021.
Here are the main highlights of Spotify’s Q2 2021:
- Monthly Active Users (MAU) grew 24% year-over-year to 365 million at the end of Q2.
- Ad-Supported MAUs totaled 208 million at the end of Q2, up 27% year-over-year.
- Premium Subscribers totaled 165 million at the end of Q2, up 21% year-over-year.
- Total Q1 revenue was €2.147 billion (about $2.59 billion), up 16% year-over-year.
- Of that, premium revenue was €1.931 billion (about $2.3 billion) in Q2, up 21% year-over-year.
The Wall Street Journal reported that Apple Music recently overtook its rival in paid U.S. subscribers, with 28 million versus Spotify’s 26 million. However, Spotify still has more American listeners due to its free-streaming tier, according to Reuters. Apple Music is only available through a paid subscription.
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