Spotify is known as the Industry leading music streaming application for a reason and that reason is the quality, efficiency and smoothness of the experience. After a successful launch in Russia, the music streaming app has crossed a user base of over 340 monthly active users and approximately 150 million paid subscribers.
The app has shown an increase of 30% on an average since last year and the pattern shows the company’s growth year after year. The sudden hike in monthly active users is a result of Spotify’s advertising campaigns in India and the launch of their services in Russia and other markets across the globe. In a statement, the company mentioned that Russia has been its most successful opening market yet which is huge considering the huge user base of the app across the globe.
Having gotten a positive response from the Russian markets and Indian markets, Spotify has crossed a monthly active user base of 300 million which makes the company way ahead than the competition in the market- Amazon Music and Apple Music.
Rival Amazon Music has an active monthly user base of 60 million where all customers are paid and the other, Apple Music has claimed to have over 65 million active users and it too does not provide its services for free.
According to the Wall Street Journal report, Spotify has grown in its user base in the last quarter and has jumped up on its overall revenue by a margin of 15% which evaluates to USD 2.35 billion approximately. However, the company also made a total loss worth USD 120 million in the past few months which resulted in a declination of profits.
The reason behind this loss is the Spotify’s intention and aim to lure as many users to the platform as possible. In the goal to increase their user base, the company started offering subscription at lower discounted prices that affected the total revenue of their business by 12% per user which further evaluates to around $5 compared to last year’s numbers.
For those of you who don’t know, Spotify also hosts podcasts along with great music, all for free and this is i=one of the main reasons for their rapidly increasing user base. Yes, podcasts available on the platform keeps over 25% users occupied and engaged within the application.
For your information, the best-most popular podcast on Spotify is “The Joe Rogan Experience” which is wildly popular amongst English speaking sectors. There are obviously hundreds and hundreds of podcasts hosted on Spotify but only “The Joe Rogan Experience” show is in talks to become a Spotify Exclusive by the end of this year 2020.