Spotify The number of paying customers increased to 3 million in the first quarter of 2021, raising the total to 158 million, the highest part of the company’s own forecasts.
Prior to this year, SpotFi predicted a maximum of 29 million new premium customers, but a maximum of 17 million – which is almost half less than last year when demand for entertainment services increased during corona epidemics.
However, the total number of users, including ad-funded free accounts, rose by only 11 million in the first quarter to a total of 356 million. This was evident in the area below the company’s own expectations. Now Spotify is lowering its full-year forecast for 2021 from 407-427 to 402-422 million users.
Revenue fell to less than 2. 2.15 billion, a growth equivalent to 16 per cent year-on-year, which was in line with analysts’ expectations. Somewhat surprisingly, Spotify earns 14 14 million in operating levels, while analysts expect a loss of between 28-78 million, according to Bloomberg.
Compared to the previously contacted Euro 200–300 million, the company is now expected to incur a full-year loss of less than 150 150–250 million, which is similar to the SEK 1.5–2.5 billion loss at operating level.
Spotify has chosen to raise the price of many of its subscriptions in more established markets, most recently in the UK and US. It is a measure that the market demands to show profits.
Spotify now earns 4.12 euros per premium customer, 3 less than it was at the end of the fourth quarter. Revenue for the paid user has been declining over the years, with 90 percent of Spotify revenue coming from subscriptions, not ads.
For example, Spotify has announced that it will expand to 85 new countries by 2021, thereby doubling its geographical area, primarily in Africa, Asia and southern and Latin America.
Today, Spotify holds only a quarter of its revenue from music, and the rest goes to recording companies, artists and songwriters. Therefore, investing in podcasts is considered a positive step towards long-term profitability because they are cheaper to distribute and produce with fewer intermediaries. Podcasts for additional advertising revenue are unlocked, as well as new revenue models such as locked podcasts that listeners can pay to access.
By the end of 2020, less than 25 percent of all Spotify customers heard podcasts through the app, and analysts certainly wanted to see a rise. But Spotify did not present any new figures for the first quarter, but believes the stock is at the same level.
The biggest competitor in the market is Apple, which has now won a partial victory over Spotify. Sources in the Financial Times say that the European Commission’s Margaret Vestager will soon file an indictment against Apple for match-fixing. The lawsuit was probably funded by Apple Corps, which has filed a lawsuit against Apple Corps, alleging that Apple Corps was involved in a plot to assassinate Apple Computer on Friday, removing hundreds of protesters by truck.
At the same time, Apple, through its music service Apple Music, pays 1 percent or more than 80 overre for a song, which is twice as much as SpotFi. The technology company released the information in an attempt to make musicians, companies and the media appear more musical. At the same time, Spotify has more users, which significantly increases their total pay for artists.
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