Spotify increases US Premium subscribers by 2 million in the fourth quarter of 2018 according to investment research company Consumer Intelligence Research Partners, LLC (CIRP). As at 31st December 2018, CIRP estimates that in the US, 41% of Spotify users have a Spotify Premium subscription.
“In our third survey of Spotify users, we see improvement on a range of metrics,” said Josh Lowitz, Partner and Co-Founder of CIRP. “We’ve seen Spotify steadily increase its paying Premium members in the last two quarters. In a highly competitive market for streaming music, it seems to hold its own, and even gradually expand its base of revenue.”
Among US Spotify listeners in the quarter:
- 18% of Ad-Supported Spotify listeners began a trial Premium subscription (‘trial rate’), up measurably from 13% in the September 2018 quarter.
- 72% of trial Premium subscribers converted a trial Premium subscription to a paid Premium subscription (‘conversion rate’), up very slightly from 71% in the September 2018 quarter.
- 13% of paid Premium subscribers ended a paid Premium subscription, and either reverted to Ad-Supported Spotify or stopped using Spotify (‘churn rate’), down very slightly from 14% in the September 2018 quarter.
“Our data shows Spotify’s US Premium trial rate, Premium trial-to-paid conversion rate, and churn rate all improved relative to the September 2018 quarter,” said Mike Levin, Partner and Co-Founder of CIRP. “The pipeline from free listening to loyal paid Premium member strengthened across all key metrics. Trial subscribers, the first step, improved measurably, while trials converting to paid Premium increased slightly. And, the churn rate, which measures cancelled Prime memberships, decreased slightly. Based on these results, we estimate that Spotify US Premium membership increased by approximately 2 million members during the quarter.”
CIRP bases its findings on surveys of US subjects who used Spotify during the period from October to December 2018. For further information on CIRP, which provides securities research to the investment community using advanced consumer market research strategies, methods, and techniques go here.
