1 / 4 of Spotify customers now hearken to podcasts on the streaming service, the corporate introduced at this time. As a part of its fourth-quarter earnings announcement, it mentioned that its whole user count had hit 345 million, of which 155 million are paying clients. As well as, it noticed promoting income enhance, which it attributes to the expansion of podcasts as a key plank of Spotify’s strategy. The corporate mentioned at this time that it noticed a one hundred pc year-over-year enhance in income coming from its podcast studio.
The corporate posted quarterly revenues of €2,168 million, a rise of 24 % year-over-year, restricted by the depreciation of the US greenback. That boiled all the way down to a quarterly lack of $83 million, down from the $93 million loss it posted this time final 12 months. COVID-19 has remained a problem for the corporate, since various companies decreased their promoting spend to preserve money in the course of the present disaster. Spotify says that, regardless of this, curiosity has rebounded within the final quarter of the 12 months.
Spotify mentioned that regardless of one other loss-making quarter, it will concentrate on rising its person base as a substitute of on the lookout for earnings. It says that The Joe Rogan Experience, which grew to become a Spotify unique late final 12 months, is now the primary podcast in 17 territories. Rogan made headlines for inviting Alex Jones — who has been faraway from various platforms for violating abuse rules — onto his present. This additionally sparked a backlash from artists asking why Rogan obtained $100 million after they aren’t being compensated fairly.
The corporate posted a conservative outlook for 2021, saying that COVID-19 might have accelerated signups, with development as a consequence of gradual by way of this 12 months. It says it expects to achieve as much as 427 million whole subscribers by the top of this monetary 12 months, and plans to lose something as much as €300 million ($360 million) so as to take action, though it expects to boost subscription costs in various markets.