Spotify subscribers hit 130 million, a 31% increase year on year, according to its recently released Q1 2020 financial results. Monthly Active Users (MAU) increased 31% to 286 million. But despite a 22% increase in revenue of €1,848 million in the quarter, Spotify reported an operating loss of €17 million.
The streamer reported that it now has over 1 million titles on its platform and highlighted the acquisition of Bill Simmons’ The Ringer sports and entertainment podcast catalogue, a new Podcast API for developers and the introduction of Anchor’s ‘Record with Friends 2.0’ feature as evidence of its ongoing investment in podcasts and its aspiration to become the world’s number 1 audio platform.
Innovations introduced in the first quarter of this year included:
- New ‘At Home’ Hub – a one stop destination for curated playlists and podcasts for popular at home activities
- Spotify Kids available in 12 markets having recently launched in US, Canada and France
- New look for Spotify mobile – more streamlined, easy to use interface with fresh designs
- Refreshed ‘New Music Friday – a global rebrand of its influential playlist
- Introduction of Indigo Playlist (where Country music meets contemporary talent) and Mint Singles (a companion playlist to its Mint dance playlist).
Whilst understandably cautious about the effects that COVID-19 will have on its business, the company has maintained its 2020 estimates given at the beginning of the year and has put in place a number of initiatives to help support both its workforce and the artist community on which it depends.
- Spotify COVID-19 Music Relief Project – Matching donations up to Spotify contribution of $10 million.
- Artist Fundraising Pick – enables artists to fundraise directly from fans
- Contributions to Public Health Efforts Globally – donations to CDC Foundation Emergency Response Fund & COVID-19 Solidarity Response Fund for WHO.
Spotify’s forecast for Q2 2020
- Total MAUs: 289-299 million
- Total Premium Subscribers: 133-138 million
- Total Revenue: €1.75-€1.95 billion
- Operating Loss: €45-€95 million
To view the complete set of financial results for Q1 2020 go here.
