Global music streaming service Spotify has recorded a solid quarter, and the numbers for Q2 2019 indicate that its growth is continuing at a rapid pace. The total revenue for the quarter was €1,667 million, which is a 31% growth over W2 2018. The Premium revenue clocked €1,502 million of the total revenue, which is a growth of 31% year on year. The revenue from the Ad-Supported tier registered €165 million, which is an increase of 34% compared with the same period last year.
Spotify now has 232 million monthly active users, which is a 29 percent growth over the same quarter last year. In fact, this figure surpasses the 222-228 million monthly active user base guidance which Spotify had registered for this quarter. The streaming service now also has 108 million Premium subscribers. In other words, these are the subscribers who pay for the Spotify service, for an upgraded experience over the advert-supported Free subscription tier.
“Timing of certain global music releases yielded some incremental benefit, as did our launch on PlayStation consoles across the Middle East and Latin America. Of note, two markets that have been long tied to physical music distribution, Germany and Japan, both hit milestones during Q2, performing materially better than forecast. Additionally, our newest market India performed well and in line with expectations,” said Spotify in the earnings call.
It was during this quarter that Spotify rolled out the Lite app for its subscribers in 36 markets, including India. The Lite app is designed to be frugal with resources, and is meant for a better music streaming experience on lower-end Android phones.
Spotify’s Q4 2019 guidance indicates they expect to have between 250 -265 million monthly active users with between 120-125 million of those converting to Premium subscriptions.
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