Streaming: Spotify makes a profit – more users and higher prices

2023-10-24 16:47:19

Streaming Spotify makes profit – more users and higher prices

The market leader in music streaming has 574 million users worldwide. photo

© Fabian Sommer/dpa

After losses in the three-digit million range last year, the music streaming service Spotify is back in the black and expects a further increase in users at the end of the year.

Spotify moved into the black in the third quarter after a surge in users and a price increase. The music streaming market leader posted a profit of 65 million euros after a loss of 166 million euros a year earlier. In the second quarter there were still red figures of 302 million euros.

Spotify gained 6 million subscription customers and 23 million users overall within three months. The service now has 574 million users, 226 million of whom are paying subscription customers, Spotify said. That was two million more than the company had promised.

For the final quarter, Spotify expects a significant jump to 235 million subscription customers and 601 million users overall. The Swedish company is considered the clear number one in music streaming, ahead of Apple and Amazon.

Quarterly sales rose by eleven percent year-on-year to around 3.36 billion euros. Advertising revenue from the free version and podcasts rose by 16 percent to 447 million euros, while revenue from the subscription business grew by ten percent to a good 2.9 billion euros. Spotify increased subscription prices in numerous countries in July, and Germany followed suit at the beginning of October.

dpa