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

Design Studio Nightjar Launches Publisher Platform For Sneaker Freaker
  • Uncategorised

Design Studio Nightjar Launches Publisher Platform For Sneaker Freaker

Sydney-based design and technology studio Nightjar have launched a new website for Sneaker Freaker. Founded in 2002, the street culture magazine is the first and only international footwear magazine. From its roots as a DIY-style fanzine to today’s global coverage, its print pages and online platforms document every colab, custom, limited edition, retro reissue, Quickstrike, Hyperstrike […]

Former Haystac Head Of Strategy Launches PR Toolkit For Small Businesses
  • Advertising

Former Haystac Head Of Strategy Launches PR Toolkit For Small Businesses

Haystac’s former National Head of Strategy, Haylie Marchant (pictured) has launched The PR Toolkit – an online resource and DIY PR platform educating and empowering small and medium sized businesses to do their own PR. Offering a mix of free resources and easy-to-use how to guides, the one-stop-shop for DIY PR covers media relations, media […]

Malcolm Turnbull & Janine Allis Elevate BIPOC Voices In Australia With New Series
  • Media

Malcolm Turnbull & Janine Allis Elevate BIPOC Voices In Australia With New Series

One Love Australia has launched a new social change initiative that will see a raft of high profile individuals, including former Australian Prime Minister Malcolm Turnbull and Boost Juice’s founder, Janine Allis, take part in a video interview series set to turn racism on its head. The initiative – titled #ShareThePlatform – will see these […]

Omnicom’s Resolution Digital Named As Google Honours Agency Of The Quarter
  • Advertising

Omnicom’s Resolution Digital Named As Google Honours Agency Of The Quarter

Resolution Digital has been awarded the Australia’s Agency of the Quarter award in the prestigious Google Honours program. The Honours program for 2020 recognises the achievements of the very best performance marketing agencies and providers across Australia and New Zealand. The program consists of 3 quarters, 43 agencies and over 500 individuals; measured on account […]

Perth Agency Firefly Adds Six New Accounts & Launches New Media Arm
  • Advertising

Perth Agency Firefly Adds Six New Accounts & Launches New Media Arm

Firefly has brought on six major new clients as it continues to expand, adding new media planning and buying arm to its business. Managing Director Andrew Mathwin (pictured) said the independent agency, known for clients such as Air New Zealand, Buy West Eat Best, West Coast Eagles and Mrs Mac’s Pies, had a strong year […]

The Mint Partners Wins Pernod Ricard, Cemoy & Little National
  • Advertising

The Mint Partners Wins Pernod Ricard, Cemoy & Little National

Independent communications consultancy The Mint Partners has bolstered its integrated client roster and signed a number of premium lifestyle brands to kick start the new financial year. With an array of new products, services, and a focus on insight-led and creative integrated communications, MINT has enjoyed recent success with an expanded portfolio across new categories including fintech, […]