While Spotify has reached 551 million monthly active users, it has also increased its subscription prices worldwide. The company, which increased the number of paying subscribers by 17 percent compared to the previous year, increased its revenues by 11 percent to $ 3.5 billion at the end of the second quarter. In the US, an individual premium plan will cost $10.99 per month instead of $9.99.
Spotify, the leader of the online music market, increased its revenues by 11 percent to $ 3.5 billion in the second quarter. The increase in the company’s advertising revenues in the second quarter was 12 percent. Spotify also posted an operating loss of $274 million in Q2.
Spotify has reached 551 million active users.
There are 220 million people around the world paying for a Spotify subscription. The year-over-year growth in the number of paying subscribers was 17 percent. Overall, Spotify currently has 551 million monthly active users. That means 331 million users use the service every month with a free, ad-supported account. Spotify had the most new users in a single quarter. The company had 36 million new active users in the second quarter.
In general, compared to the same period last year, there was a 27 percent increase in the number of premium subscribers and a 17 percent increase in the number of active users. In other words, Spotify is growing nicely, but the company is attracting more free users than paid users. Of course, some users start out with a free account and then become paid subscribers.
Spotify’s premium subscribers now represent 39.9 percent of its overall user base. This is an important metric as it is much easier to monetize paid users than ad-supported users.
Individual package price increased from $9.9 to $10.99
Spotify has announced that it is raising its premium packages after months of resistance to raising their prices. In the US, an individual premium plan will now cost $10.99 per month instead of $9.99. Similarly, the dual plan will be $14.99 instead of $12.99, and the family plan will be $16.99 instead of $15.99.
The company also reflects these price increases in other markets, including most of the European Union, the United Kingdom and several other countries in South and Central America, Asia and Oceania. These changes will have an impact on Spotify’s profitability in the coming quarters.