Reports Music

Spotify Q4 2019 Earnings Great Year for Premium, Less So for Ad Supported

Mark Mulligan
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The 20,000 Foot View:  2019 was another strong year for Spotify’s premium business, in which it saw off growing competition to retain its leading global market share. But it was also another year in which Spotify’s ad-supported business did not grow fast enough.

Key Insights

  • Spotify finished            with            million subscribers, up            on            and adding three million more            subscribers than it did in           
  • Full-year (FY)            premium revenue was also up                       billion, but when churned-out subscribers            factored in, monthly average revenue            user (ARPU) fell from            FY            to            FY 2019
  • Latin America            Rest of World contributed slightly            to global subscriber growth in                       compared to            in 2018
  • Ad-supported user            accelerated markedly in 2019, with            new users added compared to            in 2018
  • Spotify finished            with            million ad-supported monthly average            (MAUs), with a reduced paid            rate of           
  • 2019 was            breakout year for Rest of            with the region increasing its            of ad-supported MAUs from            in            to            in 2019, representing            of            growth
  • Premium gross            continued steady recovery to            in            while ad-supported gross margin headed            the opposite direction, dropping to           
  • Churn management            one of Spotify’s standout success            – continued its long-term improvement            2019, reaching            for FY 2019

Companies and brands mentioned in this report:  Spotify