Spotify hits over 200 million subscribers, becoming first music streaming service to do so

Spotify reveals that it continues to see an increase in paid subscribers, becoming the first to hit over 200 million. As of December 31st, 2022, Spotify’s premium subscriptions rose to 205 million, according to its earnings report.

The end result of the last quarter outpaced Spotify’s projections. Initially, the company believed it would reach 202 million paid subscribers and increase its monthly active users (MAUs) to 479 million. However, with its 205 million subs, Spotify also reports it’s achieving 489 million MAUs. This total represents a 20 percent rise from the past quarter.

By comparison, Apple Music is said to have 60 million paying subscribers as of 2019. Amazon Music is reported to have had 55 million as of 2020. Of course, these figures have likely fluctuated. However, given Spotify’s milestone, it paints a fairly obvious picture of which company holds the market share.

Despite breaking records and surpassing its own estimates, Spotify is reporting an imminent layoff of six percent of its workforce. Much like other tech companies, the music streaming service hasn’t deflected economic challenges. Therefore, roughly 600 staff members will be laid off from the company.

It’s reported that Spotify’s operating loss totals around $250 million USD (roughly $334 million CAD). This past quarter’s losses landed under Spotify’s estimates of $325 million (around $434 million CAD.) A premium subscription to Spotify costs $9.99 per month in Canada. Revenue for the premium subscription branch at the company sits at an estimated $4.93 USD (roughly $6.58 CAD). This marks a year-over-year increase of three percent. However, the figure remains slightly lower than the previous quarter’s $5.01 USD (est. $6.68 CAD).

This past month, we’ve seen some of the biggest tech companies report massive layoffs. For instance, Google recently laid off 12,000 employees. Microsoft also had 10,000 staff members on the chopping block. Plus, late last year, Meta also made the decision to lay off 11,000 employees. While Spotify’s ~600 affected staff members pale in comparison, it’s still a blow to the livelihoods of those working for the company.

Source: The Verge