The total number of Spotify users grew by 29 percent in a year, the music service reports in its financial figures for the third quarter of this year. The number of paying users grew by 27 percent compared to 2019.
The strong performance is due to marketing campaigns in India and the launch of Spotify in Russia and twelve neighboring countries last July. Spotify calls the start in that region its “most successful new market launch to date”.
Spotify increases the lead
With its strong growth, Spotify remains well ahead of its biggest competitors, Apple and Amazon. Amazon Music had 55 million users at the beginning of this year, almost all of them paying. Apple Music, only available in paid variant, last reported its number of users: 60 million.
The user growth resulted in a turnover growth of 19 percent compared to last year, to 1.9 billion euros. Nevertheless, a net loss of 101 million euros was made, compared to a profit of 241 million euros a year ago. This loss is partly due to new strategies to attract new users, such as discount campaigns. Revenue per users thus decreased by 10 percent compared to a year earlier.
Podcasts are growing, despite criticism
Podcasts also continue to grow in popularity on Spotify. The service now offers 1.9 million podcasts, up from 1.5 million last quarter. The number of users who listen to a podcast on Spotify at least once a month has grown from 21 to 22 percent. Podcast The Joe Rogan Experience is generally Spotify’s most popular podcast.
Rogan switched exclusively to Spotify earlier this year. The popular podcaster has come under fire for inviting well-known conspiracy thinker Alex Jones and having demonstrable nonsense spread. In a leaked email, a Spotify CEO defends the step in the context of ‘diversity’.