Spotify Ad Revenue Down 21%, Yet Paid Subscriptions Up

Spotify Ad Revenue Down 21%, Yet Paid Subscriptions Up
SHARE
THIS



Spotify has revealed an ad-supported revenue drop of 21 per cent amid the global coronavirus pandemic.

In good news for the music streaming app, however, is that its revenue is split between ad-supported users and paid subscriptions.

The latest figures show Spotify’s paid subscriptions are currently at 138 million worldwide, which is a 27 per cent rise year-on-year.

Spotify CEO Daniel Ek told investors: “When I look at the landscape, what excited me is we’re going after audio.

“Audio is a multi-billion user opportunity and it’s a marketplace that is currently north of $50bn in advertising revenue. It’s the combination of subscription and advertising in the long-term that I think is the future of big business.”

Latest figures also show Spotify’s revenue has risen 13 per cent to $2.2 billion, which is below its forecasted estimates.

Meanwhile, Q2 ad revenue dipped 21 per cent, with Ek admitting the quarter “started off slow”.

He said: “The last three weeks of Q1 were pretty weak, and those big declines continued into April and May. Ads business was down about 25% and then we really had a nice pickup in June, which was only down about 10%.”

Positively, however, Spotify’s paid subscriptions hit above estimates in Q2 with an additional eight million subscribers.

Please login with linkedin to comment

Spotify

Latest News

Dairy Australia Launches Latest “Buy. Support. Enjoy Aussie Dairy” Via Elmwood
  • Campaigns

Dairy Australia Launches Latest “Buy. Support. Enjoy Aussie Dairy” Via Elmwood

The latest instalment of Dairy Australia’s “Buy. Support. Enjoy Aussie Dairy,” campaign has launched via elmwood. The ad aims to highlight the health benefits of getting your daily dose of dairy while also supporting local farmers and communities. The new Enjoy phase of the Dairy Australia campaign follows on from the initial scene-setting campaign, (around […]

Retired Marketing Man Andrew Piccoli Speaks About His Children’s Book ‘Dexter The Dahu’
  • Marketing

Retired Marketing Man Andrew Piccoli Speaks About His Children’s Book ‘Dexter The Dahu’

Andrew Piccoli spent his career overseeing some of Australia’s most memorable ad campaigns. Now, he has turned his attention to a particular area of passion: children’s literature. Now retired, Piccoli spent the COVID-19 lockdown writing the story of Dexter the Dahu for children aged between five and nine. He has donated a copy of the charming […]

A Clearer Lens: Restoring Trust In Out Of Home Measurement
  • Opinion

A Clearer Lens: Restoring Trust In Out Of Home Measurement

Outdated and modelled legacy measurement metrics being used by OOH companies have hindered confidence in the channel. Robin Arnold [pictured], Chief Technology Officer for LENS Technology & Analytics explores the few hero systems emerging to bring trust back to the channel. What do marketers really want? It’s a hard, nuanced question that has many answers. […]

Opinion

by B&T Magazine

B&T Magazine