Spotify now has 236 million premium subscribers, a 4 The percentage increased last quarter, while its total monthly active users rose 5 percent to 602 million. The announcement comes as part of the fourth quarter earnings release covering the three months ending December 31. In 2023, Spotify's users and premium subscribers grew by 113 and 31 million, respectively, setting records for the company.
The results cap a year that included both cost cuts and price increases for the world's largest audio streaming service. The company announced last December that it would lay off 17 percent of its workforce, or more than 1,500 people, in 2023, its third largest layoff. Spotify increased its prices in the US and other markets around the world. The monthly cost of the premium subscription, which cost $9.99 for more than a decade, has risen to $10.99.
Despite the drive toward efficiency, Spotify posted a quarterly loss of €70 million (about $75 million), compared to a profit of €65 million ($70 million) in Q3. But that's an improvement over the €270 million loss (about $290 million) posted in the same quarter a year earlier. Its net loss for the full year 2023 was €532 million (about $570 million). But average revenue per user has risen, now standing at €4.60, up from €4.34 last quarter and €4.55 in the same quarter a year earlier. Advertising revenue rose to €501 million (about $538 million) in the quarter. The Wall Street Journal Notes An all-time high.
Beyond music, Apple's podcasting and audiobook efforts continue, though the company has adjusted its approaches in recent months. It recently renewed its contract with Joe Rogan, however, saying it would allow his podcast to be distributed via other podcasting platforms. On the audiobooks side, the streaming service allows premium subscribers to access up to 15 hours of audiobook content as part of their subscription, after previously selling it as an on-demand supplement.
Today's release again doesn't specify when Spotify's lossless streaming option might launch. The company announced the feature, branded “HiFi” at the time, almost three years ago in February 2021, but it has yet to announce an official launch date. As of last March, it's still “at some stage,” and recent reports suggest it might be branded “premium,” but it's unclear when it will be publicly available.
