Spotify had predicted that its growth would start to decline. The company said that this is because of the reason that an unexpectedly large number of people had signed up during the coronavirus pandemic. As expected, the results of the recent quarter show that the number of new signups has come down to 9 million. Despite the downfall in new signups, there is a piece of good news for the audio streaming company. This is because the major chunk of new subscribers has signed up for Premium. According to the company, there are seven million premium subscribers and the remaining two million went for ad-supported. This has increased the revenue of the company and resulted in the second successive quarter of profitability.
With this, the total number of premium subscribers of the company has increased to 165 million and the number of monthly active users stands at 365 million. According to the company, this is a year-over-year increase of 20 percent in the number of premium subscribers. Similarly, the year-over-year growth for active users is 22 per cent. The numbers are much more than rival Amazon Music and Apple Music. They don’t release comparable numbers on a regular basis. But recent figures compiled by Music Ally show that number of paid subscribers of these companies are 55 million and 60 million respectively.
Spotify has been showing keen interest in podcasts. The company showed it in this quarter as well. It continued with acquisitions and investments in both technologies as well as content development for podcasts. Most recently, Spotify acquired exclusive rights for two podcasts. It also acquired startup Podz to improve discovery. Podz’s technology helps the company to create preview clips highlighting key moments of any podcast. This helps users to understand what exactly they are going to hear without listening to the entire content. Podz has over 100,000 hours of training in doing this. Spotify has so far not mentioned anything about the financial details.