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Spotify Q3 2020 Earnings The Shift to Free

Mark Mulligan
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The 20,000 Foot View: With three quarters of 2020 gone, Spotify has prospered during the most challenging of times, with consistent growth across most metrics.            2020 saw a slight deviation from the script though, with ad-supported in the driving seat, especially in emerging markets.

Key Insights

  • Spotify added            monthly active users (MAUs) in            to reach            million MAUs, compared            the            million it added one            earlier. This was higher than                       million and            million added in                      
  • Spotify finished                       million subscribers, one million above            start-of-year forecasts. It added fewer            in            (six million) than it            in            (eight million) but it            by more year-on-year (YoY)            million)
  • Ad-supported was            strongest category in            adding            million            MAUs to reach            million, more            double the seven million it            in            and            million up on           
  • Spotify’s regional            growth was one of two            different stories across paid and                       of Spotify’s quarterly paid user            came from Europe, while            of            user growth came from Rest            World
  • Spotify recorded            of premium revenue in            2020,            just            on            2020 but            YoY.            steady premium gross margin improvement            in            2020, reaching           

Companies and brands mentioned in this report: Spotify