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Spotify profits from more subscribers and price hikes

Spotify profits from more subscribers and price hikes


Spotify increased the price of Premium from $9.99 to $10.99 helping boost the company to a rare quarterly profit.

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The number of people paying for Spotify Premium rose three percent to 226 million on a quarterly basis as the streaming service announced price increases across the US and several other global markets. Spotify’s monthly active users (MAUs) also rose to 574 million as of September 30th, a four percent increase from last quarter. Both rises were slightly above Spotify’s forecast.

Comparing performance year over year, Premium subscribers were up 16 percent while MAUs were up 26 percent. Spotify says the net growth in monthly active users was the second largest third-quarter increase in its history.

Spotify’s latest subscriber figures came as part of today’s earnings report, which covers the three months ending September 30th. In the midst of the quarter in late July, the company announced price increases — notable for being Spotify’s first in the US since launching there over a decade ago. It saw the price of a standard Spotify Premium subscription rise $1 to $10.99. Other markets and subscription plans like Duo, Family, and Student also saw increases.

Overall, Spotify reported a profit of €65 million (around $69 million) for the recent quarter, versus a €166 million ($177 million) loss the year previous. Operating income was €32 million (around $34 million), versus an operating loss of €228 million (around $243 million) in the same quarter the previous year. Spotify has frequently posted quarterly losses as it’s traditionally prioritized growth over quarterly profits.

Spotify’s latest earnings report once again contains no information on when its long-promised lossless streaming option could launch. The company announced the feature over two and a half years ago in February 2021 and insists it’s still coming, but is yet to announce an official launch date. Recent reports suggest lossless streaming may now be offered in a new $19.99 “Supremium”-branded tier alongside other features.

The company continues to tweak and invest in its podcast and audiobook offerings. Spotify recently announced plans to allow Premium subscribers to listen to up to 15 hours of audiobook content as part of their subscription (it was previously available via an a la carte model). New podcasting features include auto-generated transcriptions and an AI-powered voice translation feature.