Reports Music

Spotify Q1 2019 Earnings

Report by Mark Mulligan
Cover image for Spotify Q1 2019 Earnings
Synopsis PDF PowerPoint Excel

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 milestones for Spotify, hitting        million subscribers, launching in India and becoming a podcast company. However, it was also a quarter in which a number of metrics started to soften. With the exception of ad revenue, none of these subtle shifts are enough on their own to provoke any serious concern. Collectively though, and contextualised against next quarter’s performance, these metrics may just prove to be early indicators of a potential change of pace.

Key Findings
  • Spotify hit        million subscribers in        2019, a rise of four million on        2018 and up        million from one year earlier
  • Ad-supported monthly average users (MAUs) were up seven million from        but this was fewer than the        million added one year earlier
  • Spotify’s paid conversion rate dropped half a point to        however, this was up six points from        2018
  • Rest of World ad-supported MAUs grew by around three million in        2019 quarter-on-quarter, while subscribers grew by just        million, diluting the paid user ratio
  • Spotify’s long-term premium average revenue per user (ARPU) decline slowed in        2019 with ARPU at        the lowest rate ever, down just one cent from        2018
  • Premium saw gross margin up to        and revenue up        year-on-year (YoY) to        billion, but ad revenue was up just        YoY and gross margin dropped to       
  • Spotify’s podcast acquisitions are yet to have any meaningful impact on revenue but will become a growing priority for Spotify, including for its creator strategy
  • Rightsholders are becoming progressively less tolerant of family plans because of their dilutive impact on ARPU
  • Spotify will need podcasts to start delivering revenue to offset the impact  lower ARPU from emerging markets will have on music revenue growth
  • MIDiA forecasts Spotify to reach        million subscribers by the end of 2019 with        million of those in Europe,        million in North America,        million in Latin America and        million in Rest of World

Companies and brands mentioned in this report: Anchor, Gimlet, Spotify, Warner Music

Unlock critical media insight and intelligence for competitive advantage

Our clients have full access to all of our reports. Become a Client

Already a client? Login to read this report

Or, purchase this individual report

Purchase this report