Spotify has released its Q3 earnings and saw a 13 per cent growth in premium subscribers and a 24 per cent growth in ad-supported users, while ad revenue jumped by 19 per cent year-on-year.
The music streaming service seems to have bucked the trend for major tech companies, reporting decent growth and slightly exceeding revenue by €400 million. However, the company reported a €228 million loss overall, which saw shares tumble by almost 6 per cent following the end of trading.
Spotify’s Sponsored Recommendations saw “triple digit” year-over-year growth in total campaign volume. Spotify said the growth was due to its largest-ever campaign in Q3 and the “successful” launch of self-serve international targeting and increased artist access to self-serve in Q3.
Podcasts also seem to be performing well, with the company saying the 4.7 million shows on the platform grew in “substantial double-digits” with per user podcast consumption rates growing as well. Archetypes, the podcast hosted by Meghan Markle and exclusive to Spotify, performed particularly well. Quelle surprise .
Spotify also launched a partnership with FC Barcelona this quarter, showcasing 14 artists from eight markets across the on-stadium inventory, reaching tens of millions of TV viewers and 90,000+ fans in the stadium at each of the three La Liga matches in August and September.
However, while Spotify launched audiobooks this quarter, the company fired shots at Apple claiming the California-based company’s “anti-competitive behaviour hurts everyone.”
“Almost four years. That’s how long it’s been since Spotify filed a complaint against Apple with the European Commission, and we are still waiting on a decision. And while we wait, Apple continues to dictate what online innovation looks like, doing serious harm to the internet economy, choking competition and the imagination of app developers,” said Spotify CEO Daniel Ek.
“In the absence of government intervention—in Europe, the U.S., or any other market around the world—Apple has shown time and again that it will not self-regulate and has no real incentive to change. With our Audiobooks launch, Apple has once again proven just how brazen it is willing to be with its App Store rules, constantly shifting the goalposts to disadvantage their competitors.”
Spotify’s performance in the market was relatively on par with Alphabet – though on a much smaller scale. The streaming service massively outperformed Snap, as well. However, that the company saw strong growth in subscribers and new collaborations while still turning a loss will be concerning for investors.
