Spotify Q2 2021 earnings Slowdown arrives
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The 20,000 Foot View: The growth headwinds that appeared in 2021 manifested in a pronounced user growth slowdown in with ad-supported users hit hardest. Spotify has been through lean growth periods before, but what is different this time is that streaming’s new players are growing at pace. Slowing down as your competitors accelerate is never a good thing. The net result is that the labels’ dependency on Spotify is beginning to lessen.
Key Insights
- User growth Spotify added nine million monthly users (MAUs) in 2021 to million MAUs, compared to million 2021 and million in 2020
- Spotify’s podcast base growth has slowed also, largely in line with the MAU base since 2020
- Subscriber growth better, adding seven million to million, following net additions of three million the previous quarter
- Europe saw largest number of net subscriber million quarter-on-quarter (QoQ), million year-on-year
- Latin America numbers only recovered to 2020 million) with annual growth slowing compared to 2020
- Rest of quarterly subscriber additions were under million, compared to nearly two in 2021 and a little one million in 2020
- Revenue growth more positive, reflecting improving monetization. revenue was up million on quarterly basis and ad revenue up million, compared to a of million in 2020
- The major had a strong 2021, registering revenue growth on 2020 to billion. Spotify’s streaming revenue growth
- Spotify’s share streaming revenue growth fell from 2017 to just in 2021
Companies and brands mentioned in this report: Amazon Music, Audiomack, Clubhouse, Facebook, Greenroom, Instagram, Peloton, Shorts, Soundcloud, TikTok, WMG, YouTube