Spotify currently has 236 million Premium members, up 4% from the previous quarter, and 602 million monthly active users overall, a 5% gain. According to The Verge, this news was announced as part of the company's results report for the quarter that ended on December 31, 2023.
Spotify achieved new highs in 2023 with a userbase growth of 113 million and a premium membership growth of 31 million.
This illustration picture taken on July 24, 2019, in Paris shows the logo of the Swedish music streaming application Spotify on the screen of a tablet.
Amid Price Increases, Cutbacks
For the biggest audio streaming service in the world, the figures round up a year that saw price hikes and cost cuts.
As part of its third wave of layoffs in 2023, the firm announced last December that it would be eliminating 17% of its staff or more than 1,500 individuals. Earlier this year, Spotify also increased rates in the United States and other global regions. The most noticeable change was the $10.99 hike for a Premium membership, which had been $9.99 for over a decade.
Despite efforts to improve efficiency, Spotify lost $75 million in the fourth quarter, compared to a profit of $70 million in the third quarter. However, compared to last year's same quarter, when it lost $290 million, this was an improvement. The firm's total loss for the year 2023 was $570 million.
On the other hand, the average revenue per user increased to $4.90 from $4.60 in the previous quarter and $4.80 in the same period last year. The Wall Street Journal reports that advertising-income reached a record high of $538 million in the quarter.
Industry Rivalry
Even though Apple has changed tactics in recent months, its podcasting and audiobook projects outside music are still going strong.
It has just extended its partnership with Joe Rogan, but it has also announced that it would now let other podcasting platforms distribute Rogan's show.
Regarding audiobooks, the streaming service has taken a different approach. Instead of offering it as an on-demand extra, Premium customers may now access 15 hours of audiobook material as part of their subscription.
See Also: Spotify to Cut Off Subscribers Paying via Apple App Store: Here's Why!
