Spotify Technology has added a number of more subscribers in the second quarter this year. The music streaming app Spotify has reported that it has managed to add 8 million subscribers in the quarter that ended in June. However, we should mention that this is below the expected 8.5 million subscribers. It has revealed that at the end of the second quarter, Spotify’s collective monthly active users grew to 232 million. The music streaming app Spotify now has a total of 108 million paid subscribers, and they have increased by 30% from a year ago. It is worth pointing out that both paid and unpaid subscribers are included in monthly active users.
The company stated, “We missed on subs… That’s on us.”
Users who are having the benefit of the 30-day trial are included in paid subscribers. In addition to this, Spotify has also launched a biannual campaign that is offering access to the premium service for $1 to its users.
Since last quarter, all these factors have pressed its average revenue per user to €4.86 ($5.42) — down 1%. The company further added that it expects the decline to continue in the low single digits for the rest of the year.
On the other hand, Apple Music had 60 million paid subscribers as of June this year. Users who are availing the Apple Music’s three-month free trial are also included in this number.
As per the company, its quarterly revenue increased 31% from last year to $1.86 billion, and at the same time, it’s operating expenses increased by 4%. Apple says that its operating loss declined to $3.34 million, which is much better than expected by the analyst. They expected the music streaming platform will drop about $62 million on sales of $1.83 billion. Furthermore, the company says that it has entered into an agreement with two out of the four major music labels for accredits. It further revealed that it is actively in talks with the other two, however, the company did not name the music labels.
The massive revenue generated by Spotify goes to the music labels. They all get together to renew their agreements in every few years. This decides the company’s future profits and losses. However, it also depends on how its existing limits transform during the dialogue with the music labels.
The music streaming service, which has ramped up its podcast offerings with the acquisition of Gimlet Media, Anchor and Parcast, said its podcast audience is up 50% since the last quarter. Barry McCarthy, CFO of Spotify, said the company is still open to acquiring more podcasting businesses.
For the latest gadget and tech news, and gadget reviews, follow us on Twitter, Facebook and Instagram. For newest tech & gadget videos subscribe to our YouTube Channel. You can also stay up to date using the Gadget Bridge Android App.