Spotify hits over 200 million subscribers, becoming first music streaming service to do so

Spotify is the first music streaming service to surpass 200 million subs, though layoffs are still imminent

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Spotify’s continued increase in paid subscribers has helped it to become the first music streaming platform to hit over 200 million users.

As of December 31st, 2022, Spotify’s premium subscriptions rose to 205 million, according to its latest earnings report. The results outpaced Spotify’s projections. Initially, the company believed it would reach 202 million paid subscribers and increase its monthly active users (MAUs) to 479 million. However, with its 205 million subs, Spotify reports it has achieved 489 million MAUs. This total represents a 20 percent increase from the past quarter.

By comparison, Apple Music is said to have 60 million paying subscribers as of 2019. Amazon Music is reported to have had 55 million as of 2020. Of course, these figures have likely fluctuated over the past few years. However, given Spotify’s milestone, it paints a clear picture of which company holds the largest market share.

Despite breaking records and surpassing its own estimates, Spotify recently reported an imminent layoff of six percent of its workforce. Like other tech companies, the music streaming service hasn’t deflected economic challenges resulting in the layoff of roughly 600 employees.

It’s reported that Spotify’s operating loss totals around $250 million USD (roughly $334 million CAD). This past quarter’s losses landed under Spotify’s estimates of $325 million USD (around $434 million CAD.) A premium subscription to Spotify costs $9.99 per month in Canada. Revenue for the premium subscription branch at the company sits at an estimated $4.93 USD (roughly $6.58 CAD) per subscriber. This marks a year-over-year increase of three percent. However, the figure remains slightly lower than the previous quarter’s $5.01 USD (about $6.68 CAD) per subscriber.

We’ve seen several massive tech companies report sizable layoffs this past month. For instance, Google recently laid off 12,000 employees, and Microsoft cut 10,000 staff members. Plus, late last year, Meta also made the decision to lay off 11,000 employees.

Source: @eldsjal Via: The Verge

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