Spotify has released its Q3 earnings report, and the results are notably positive for once
The company posted a profit of €65 million for the third quarter, with an operating income of €32 million. These figures represent a significant turnaround from a year ago when the company recorded a net loss of €166 million and an operating loss of €228 million.
In addition to its improved financial performance, Spotify witnessed a 3% increase in paying customers compared to the previous quarter and a substantial 16% rise compared to the same period last year. The number of monthly active users also saw growth, reaching 574 million, marking a 4% increase quarter-over-quarter and an impressive 26% surge year-over-year.
Traditionally, Spotify has prioritized user growth over immediate profitability, often resulting in reported losses. Audiophile users are particularly excited about the forthcoming lossless streaming tier, a feature Spotify has promised to deliver. This new tier, dubbed ‘Supremium’ and priced at $19.99, is anticipated to offer not only lossless quality but also additional bonus features.
Push for Premium
Going forward, Spotify’s premium user base is expected to grow even further as the company continues to remove basic features from the app’s free tier. Earlier this month, the streaming giant removed several features for free users in India such as repeat, rewinding to specific song sections, revisiting previous songs, or customizing playlist orders.
Additionally, Spotify also removed the regular shuffle feature and replaced it with ‘Smart Shuffle’. This new version of Shuffle randomly adds similar songs to your queue from outside your playlist whether you like it or not. The traditional Shuffle is no longer available for Indian users.
It is unclear if this change will ever affect Pakistan, but we sure hope it doesn’t.
