Spotify's Paid Users Increased
Spotify Technology SA reported a rise in first-quarter revenue on Monday as the music streaming company hit 100 million paid subscribers for its premium service.
The company took on 4 million customers in the quarter. Last quarter, Spotify doubled down on its podcast bet with two strategic acquisitions -- Gimlet Media Inc. and Anchor -- hoping to drive subscriber growth through mediums outside of music as record labels have begun demanding more money. And since last reporting financial results, the streaming service bought podcast studio Parcast for an estimated $100 million.
The global leader in the sector, with double the number of subscribers of nearest rival Apple Music, Spotify has launched in regions like India, Middle East and North Africa in recent months.
Spotify said it had 217 million monthly active users (MAUs) in March, up from 173 million in the same quarter a year earlier. Paying subscribers at the end of the quarter were 100 million, up from 75 million a year earlier.
Revenue rose 33 percent to 1.51 billion euros ($1.69 billion).
Europe contributed 40 percent of the total paid subscribers, followed by North America with 30 percent.
Spotify said it expects to have about 107 million to 110 million premium subscribers by the end of the current quarter.
Spotify also said it expects total revenue of 1.51 billion euros to 1.71 billion euros for the second quarter.