The market leader in music streaming, Spotify, gained significantly more new users than expected in the past quarter. Partly due to higher taxes on the music industry, Spotify remains deep in the red. The company is now countering this with a price increase in many countries.
The number of Spotify users rose from 515 to 551 million in three months, the Swedish company announced on Tuesday. Only 530 million were predicted. The number of paying subscription customers increased quarter after quarter from 210 to 220 million. Spotify itself had counted on 217 million here.
What makes the rapid growth interesting is that Spotify, unlike its major competitors Amazon and Apple, still does not offer music with surround sound in Dolby Atmos format. However, Spotify founder and boss Daniel Ek focused on expanding the podcast business. Rivals had already raised prices in recent months.
Spotify’s quarterly revenue increased about 11 percent year over year to just under $3.2 billion. He met the prognosis. It amounted to a $302 million loss from being in the red from $125 million a year earlier. (saw/sda/awp/dpa)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
