Spotify Earnings Q3 2019 Up on Most Counts
Report by
Mark Mulligan

Our clients have full access to all of our reports. Clients can log in to read this report. Click here to become a client or, you can purchase this individual report.
The 20,000 Foot View: 2019 was a quarter of mixed fortunes for Spotify, with its subscriber base showing good, consistent growth, podcasts making a solid early showing, emerging markets demonstrating promise but ad revenue falling short.
Key Insights
- Spotify hit million subscribers in 2019, up five million on 2019 and in line with expected growth
- Spotify added million monthly average users (MAUs) in 2019 but grew its free user base significantly faster than paid, adding million ad-supported MAUs
- Spotify added two million subscribers in North America, one more than it did the prior year, reflecting the continued strength of the US streaming market
- Rest of World is growing faster in free users than paid: Spotify added million Rest of World ad-supported MAUs compared to million subscribers, with the gap widening compared to 2018
- The paid-to-free ratio was down in both of Spotify’s predominately emerging market regions, due to free user growth creating a wider subscriber acquisition funnel
- North America and Europe added two million subscribers each, reaching million and million respectively
- Premium revenue grew year-on-year (YoY) to reach million in 2019 while gross margin was down from to 2019 was a weak quarter for ad-supported revenue, up just million on 2019, representing of all revenue, compared to one year earlier million Spotify users streamed podcasts on-platform in 2019, generating million in revenue
- Spotify churn fell slightly from in 2019 to making it the second successive quarter that Spotify has recorded its lowest to-date churn rate
- MIDiA forecasts Spotify to hit million subscribers in 2019
Companies and brands mentioned in this report: Spotify