- Spotify app has more than 100 million downloads worldwide.
- Spotify targets to add between 2 million to 6 million premium subscribers in the third quarter and plans to reach between 120-125 million paid users by end of the year.
Spotify in second-quarter earnings report said that it has got 108 million Spotify premium users – 8 million more than the previous quarter and 232 million monthly active users. Spotify app has more than 100 million downloads worldwide.
It also revealed that two of its four major label partner are renewing their sound recording licenses and the other two are in discussions.
Sony Music and the independent label collective Merlin are speculated to have renewed the agreements and the company is in ongoing negotiations with Warner Music. The only label which remains is Universal, the world’s largest music company.
CFO Barry McCarthy said in Wednesday morning’s investor call was attributed to a “shortfall in execution” — specifically a student promotion — “rather than a softness in the business,” and the company can make up for it. “That’s on us,” he said.
Spotify targets to add between 2 million to 6 million premium subscribers in the third quarter and plans to reach between 120-125 million paid users by end of the year. The audience for its podcasts has increased by 50 percent which is the primary target for the future.
The company also decided to calm down the nerves of investors about the ongoing state of negotiations with different labels.
CEO Daniel Ek pointed to Africa, South Korea, and Russia as the prime target markets for growth and that despite its troubled launch in India is ‘growing in line with expectations’.
The company’s total revenue for the quarter was $1.86 billion — up 31% from the same period in 2018 — of which subscription revenue made up 90.1% and $1.67 billion. Ad-supported revenue for the quarter reached $184 million, up 34%. McCarthy said he expects the company’s year-over-year growth rate to “come down slightly — you can’t sustain 35% growth.”
Daniel also said the company believes it is still “in the early stages of subscriber growth,” and pointed to projects like vertical videos and its Spotify Singles feature as “enabling artists to connect with fans in bigger ways.”