Streaming giant Spotify forecast music listeners to reach 572 mn

Streaming giant Spotify forecast that the number of listeners each month would reach 572 million this quarter.
Q2 2023 Spotify revenueSpotify said the number of monthly active users rose 27 percent to 551 million in the second quarter.

Premium subscribers, who account for most of the company’s revenue, rose 17 percent to 220 million.

“It’s the sixth consecutive quarter now that user growth has been doing incredibly well, and it’s the gift that keeps giving,” CEO Daniel Ek told Reuters.

Spotify said quarterly revenue rose 11 percent to 3.18 billion euros ($3.51 billion). Spotify reported operating loss of €112 million.

Spotify has raised prices for its premium plans across several countries but expects those increases to have a minimal impact on revenue this quarter.

In the US, Spotify’s Premium Individual plan now costs $10.99, up from $9.99, and the Premium Duo plan has increased to $14.99 from $12.99.

The Premium Family plan will now be priced at $16.99, up from $15.99, and the Student plan will cost $5.99, up from $4.99.

Apart from the US, Spotify is increasing prices in 53 other countries, including Canada, France, the UK, Mexico and Australia.

Spotify Chief Financial Officer Paul Vogel said the increase would start to take effect from September with respect to billing cycles. “In Q4, we will have the entirety of the price increase.”

Spotify expects premium subscribers to reach 224 million this quarter and revenue of 3.3 billion euros.

After laying out plans last year to get 1 billion users by 2030 and to reach $100 billion of revenue annually, Spotify has been growing rapidly, but its costly expansion into podcasts and audiobooks has hit margins.

Last fall, Apple Music had hiked its subscription fee for individuals to $10.99 per month, with the family plan increasing to $16.99/month, among other changes.

Amazon Music Unlimited also hiked its monthly rate to $10.99 (for non-Prime members).

Last week, Google-owned YouTube increased the price of a Premium individual plan by $2 in the US for new and current customers. Users will now have to pay $13.99 per month instead of $11.99. The plan will cost $18.99 if users are subscribing from the iOS YouTube app.

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