Spotify Reports Growing Users and Subscribers Amidst the New “TikTok Music”

Spotify has announced that it now has 220 million paying subscribers, reporting a strong quarter with revenue and subscriber numbers exceeding expectations. Paying subscribers grew by 27% compared to the previous year, reaching 220 million, while monthly active users increased by 17% to 551 million. The company’s revenue also saw a significant 11% growth, reaching €3.2 billion ($3.5 billion).

In addition to its paying subscribers, Spotify also revealed that it currently has 331 million users using the service every month with a free, ad-supported account. The platform saw an impressive growth in free users, adding 36 million new active users in a single quarter.

While Spotify’s growth is positive, it is worth noting that it attracts more free users than paid subscribers. Recently, the company faced a $5.4 million fine from Swedish authorities for insufficient transparency in handling user data.

Despite the price increase for its Premium subscription offerings in the US and other global markets, Spotify anticipates a minimal impact on total revenue in the next quarter. The company expects revenue of €3.3 billion for the September quarter, with an adjusted operating loss of -€45 million.

Spotify’s decision to increase its prices follows a similar trend seen in other music streaming apps like Apple Music, Amazon Music, and YouTube Music Premium.

Meanwhile, TikTok, owned by ByteDance, has also entered the music streaming market with its TikTok Music service. The platform is currently testing the subscription-based music streaming platform in Australia, Mexico, and Singapore, offering participants a three-month free trial.

With TikTok aiming to compete with established players like Spotify in the music streaming industry, it remains to be seen how the market dynamics will evolve, especially considering Spotify’s recent price increase.