Spotify reports record user growth in 2023
Software

Spotify reports record user growth in 2023

Spotify, the popular streaming music service, has faced a number of challenges throughout 2023, including rising subscription costs and staff cuts. However, the company managed to achieve record growth in total active users and premium subscribers.

  Image source: StockSnap / Pixabay

Image source: StockSnap / Pixabay

In the fourth quarter of 2023, Spotify reported significant growth in its audience: the number of premium subscribers reached 236 million, up 4% compared to the previous quarter. Even more impressive is the growth in the total number of active users – by 5%, to 602 million. Thus, for the entire 2023, the popular streaming service attracted 113 million new users and 31 million premium subscribers, thereby setting new records.

However, Spotify’s year has not been without its challenges. In December, the company announced it was cutting 17% of its workforce, amounting to more than 1,500 people, its third major round of layoffs in 2023. In addition, the streaming service has raised the cost of a premium subscription in the US and other regions, increasing its monthly cost from $9.99 to $10.99.

Despite its efforts to save money, Spotify recorded a quarterly loss of €70 million, which is still an improvement on the €270 million loss in the same period in 2022. The total loss for 2023 was 532 million euros, but average revenue per user increased, reaching 4.60 euros versus 4.34 euros in the previous quarter and 4.55 euros a year earlier. The service’s advertising revenue also increased, reaching 501 million euros in the quarter, according to The Wall Street Journalthis is a record figure.

  Spotify subscriber growth distribution (image source: Spotify)

Spotify subscriber growth distribution (image source: Spotify)

Criticism of Apple’s App Store policies remains a focus of Spotify’s attention, especially in light of the introduction of a new technology fee that Apple plans to charge developers who want to distribute applications in alternative marketplaces in the EU, and a 27% commission on alternative payments in the US. It is unknown whether this rocky relationship between the companies contributed to Spotify’s refusal to make its service available on the Apple Vision Pro headset at the time of its launch, even through the Apple iPad app.

The company recently extended its agreement with Joe Rogan, a famous American podcaster, allowing his podcast to be distributed through other platforms. On the audiobook side, premium subscribers can now access 15 hours of audiobooks as part of their subscription, where previously they were sold exclusively as an add-on service.

Expectations for the launch of high-quality music streaming, formerly known as “HiFi” and now possibly renamed “Supremium”, continue to remain without a specific timeline for implementation. This feature, announced almost three years ago, remains one of the most anticipated innovations of the service.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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