Streaming service Spotify announced that it now has over 600 million monthly active users, as highlighted in its Q4 2023 earnings report. The company added 28 million users in the fourth quarter, representing its second largest quarterly gain in history.
Currently, the service boasts 602 million users and more than 236 million paid subscribers, marking a year-over-year growth of 15%. Despite the hike in its premium subscription prices in the U.S. last year, the subscriber growth was predominantly driven by users in Latin America and the rest of the world, accounting for 35% of total paid users.
In addition to its already impressive growth, more than 225 million users engaged with its year-end Spotify Wrapped campaign that provides insights about their on-platform streaming habits.
Spotify posted revenues of €3.7 billion ($3.97 billion), a year-on-year increase of 16%. Although the company registered an operating loss of €75 million, it marks a significant reduction from the loss of €231 million recorded for last years corresponding period. Furthermore, Spotifys ad revenues reached an all-time high of €501 million, reflecting a 12% year-on-year growth.
As part of its efforts to enhance productivity and efficiency, the company reduced its workforce by approximately 17% or around 1,500 employeesin December 2023.
Amid regulatory changes, Spotify previewed for its EU users how they might purchase subscriptions and add-ons like audiobooks on iPhones after the Digital Markets Act (DMA) becomes active. Spotify criticised Apples subsequent announcement about changes and a new core-tech feefor more than a million annual downloads from its App Store, branding it as extortion and a complete and total farce.
Ugochi Olivia Ubah is an Educator and a Writer