Spotify reports record growth in a year of layoffs and price hikes

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Spotify now boasts 236 cardinal Premium subscribers, a 4 percent summation complete past quarter, while its full number of monthly progressive users roseate 5 percent to 602 million. The announcement came arsenic portion of its 4th fourth net release, which covers nan 3 months ending connected December 31st. Over nan people of 2023, Spotify’s userbase and premium subscribers grew by 113 and 31 million, respectively, mounting records for nan company.

The results headdress disconnected a twelvemonth that included some cost-cutting and value increases for nan world’s largest audio streaming service. Last December nan institution announced it would beryllium laying disconnected 17 percent of its workforce, aliases complete 1,500 people, successful what was its third major information of layoffs successful 2023. Spotify besides accrued its prices successful nan US and different markets astir nan world earlier successful to year, which notably saw nan monthly costs of a Premium subscription emergence to $10.99 aft complete a decade costing $9.99.

Three charts showing maturation successful monthly progressive users, premium subscribers, and revenue.

A breakdown of Spotify’s subscriber increases.

Image: Spotify

Despite nan thrust towards efficiency, Spotify posted a quarterly nonaccomplishment of €70 cardinal (around $75 million), down from a profit of €65 cardinal ($70 million) successful Q3. But this was an betterment complete nan €270 cardinal nonaccomplishment (around $290 million) it posted successful nan aforesaid 4th nan erstwhile year. Its nett nonaccomplishment stood astatine €532 cardinal (around $570 million) for nan full of 2023. But mean gross per personification was up, and now sits astatine €4.60, versus €4.34 past 4th and €4.55 successful nan aforesaid 4th a twelvemonth earlier. Advertising gross besides roseate to €501 cardinal (around $538 million) successful nan quarter, which nan Wall Street Journal notes is an all-time high.

Spotify has made news precocious for its continued disapproval of Apple’s App Store policies, including nan Core Technology Fee it plans to complaint developers who want to distribute apps successful replacement App Stores successful nan EU, and nan 27 percent committee it’s charging connected alternative payments successful nan US. It’s unclear if this tense narration had thing to do pinch Spotify declining to make its work disposable connected Apple’s caller Vision Pro headset astatine launch, moreover via its existing iPad app.

Beyond music, Apple’s podcasting and audiobook initiatives continue, though nan institution has adjusted its approaches successful caller months. It precocious renewed its woody pinch Joe Rogan, though has said it’ll now let his podcast to beryllium distributed via different podcasting platforms. And connected nan audiobooks side, nan streaming work is now allowing Premium subscribers to entree 15 hours of audiobook content arsenic portion of their subscription, aft antecedently trading it exclusively arsenic an on-demand extra.

Today’s merchandise erstwhile again omits immoderate mention of erstwhile Spotify’s lossless streaming action could launch. The institution announced nan feature, which astatine nan clip was branded “HiFi” almost 3 years agone successful February 2021, but it’s still yet to denote an charismatic motorboat date. As of past March it was still coming “at immoderate point” and much caller reports propose it whitethorn now beryllium branded “Supremium,” but it’s not clear precisely erstwhile it mightiness beryllium disposable publicly.

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