Spotify Reaches 320 Million Monthly Active Users

Spotify’s most recent quarterly financial results reveal the platform has surpassed 320 million monthly active listeners. This represents a substantial 29% increase in growth for the quarter, following a notably successful expansion into the Russian market. Currently, the service boasts 144 million paying subscribers, reflecting a 27% rise in that figure.

Spotify remains the dominant music streaming provider worldwide by a considerable margin. Apple Music holds the second position, with approximately 60 million paid subscribers as of the previous year. Amazon Music is also a strong contender, reporting 55 million users—although the company does not specify the number of those who are paying subscribers (Apple’s figures represent premium subscriptions after an initial three-month trial period).

Despite experiencing strong growth, Spotify reported a quarterly loss of approximately $118 million, a change from the quarterly profit achieved in the previous quarter. The company attributes this primarily to its continued strategy of offering reduced-price plans to attract a wider user base.

During a recent earnings call, Spotify stated, “We can achieve growth by either acquiring more users or increasing prices for our current subscribers.” The company believes there is significant potential for further expansion within the current market and intends to invest in enhanced tools. These improvements are expected to boost user engagement, which in turn will improve monetization opportunities.

The company has been actively investing heavily in its ambition to become a leading force in podcasting. Over the past two years, it has allocated hundreds of millions of dollars to acquire podcasting technology and content companies, including Gimlet, Anchor, Parcast, and the sports media organization, The Ringer. The company highlighted during the call that its acquisition of The Joe Rogan Experience has rapidly become its most listened-to podcast across all English-speaking regions.

Spotify indicated that the show has “exceeded our expectations in terms of audience size. We anticipate the commencement of our exclusive broadcasting rights for this podcast before the end of the year.” The Rogan show quickly generated considerable debate. An appearance by Alex Jones, a conspiracy theorist who has been removed from other platforms, recently brought these concerns back to the forefront. The company did not provide a response to a request for comment on this matter yesterday.

The company also did not address a recent request to improve compensation and provide greater transparency for musicians—a growing concern as the COVID-19 pandemic has severely limited opportunities for income from live performances.