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.