How Has Spotify Grown in 2020?
Spotify recently published its third quarter 2020 financial performance report, with a visual highlight available via its For the Record blog.
One of the main takeaways is that the streaming service now boasts 320 million monthly active users, a figure which is made up of both free and paid members.
Spotify currently has 144 million paid subscribers, compared to 113 million this time last year, marking a 27% growth.
This increase means that Spotify continues to comfortably be the largest global music streaming service.
According to Spotify, it met or beat expectations in all its regions. Part of this growth can be attributed to the expansion in July to 13 new European markets. In the financial report, Russia in particular is singled out as unlocking “significant pent-up demand”.
Despite the boom in user figures, Spotify still posted a quarterly loss of $118 million. The company puts this down to the discounted plans it’s running to lure new people in.
Of course, this doesn’t mean it’s time for Spotify to rest on its laurels. On a call running through the report, the company said:
Spotify Is Planning to Raise Membership Prices
Spotify also discussed its plan to raise membership prices in some markets.
Though it didn’t name specific regions or prices, CEO Daniel Ek noted that there are some mature markets where Spotify has increased its value proposition and user engagement continues to grow.
It’s in these markets that Ek believes Spotify will need to increase prices in order to grow the business.
According to Ek, early tests in places like Scandinavia indicate that users believe Spotify offers exceptional value and there is a willingness to pay more for the service.
In October 2020, Spotify raised the price of its Family Plan in a number of markets like Belgium and Ecuador.
However, a global price increase might not happen immediately. Ek noted that Spotify needs to be cautious about raising prices when every market has been unpredictably hit by COVID-19.
Which Spotify Subscription is Best?
Do you not belong to the 320 million people who use Spotify every month? If so, you’re missing out on an excellent media streaming platform.
If you’re considering joining, you should read our guide on which Spotify subscription is best for you.
