The Swedish firm Spotify has announced the commercial results corresponding to the last quarter of 2020, in which it has announced that the number of paying subscribers it has increased by 11 million, with respect to the previous quarter, reaching 155 million.
It has also confirmed that despite having increased the number of paying users, the company keeps losing money. To try to counteract these losses, a few days ago Spotify announced that it was raising the price of the family plan in more countries, a plan that goes from 14,99 to 15,99 euros per month from March for current subscribers.
Just as the number of paying subscribers has increased, so has the number of users of the free version with ads, with 190 million users. Thanks to these figures, as of December 31, 2020, Spotify has 345 million users (combining the paid and the free version).
According to the Wall Street Journal, much of the growth the company has experienced is due to a combination of lengthy free trials and low-cost introductory offers in developed markets, plus a few lower quotas in developing countries, as is the case in India.
The company has registered losses of $ 125 million, a substantial reduction from the previous year, losses that reached 209 million dollars. Subscription revenue reached 1.890 million euros, while those obtained from advertising reached 281 million euros. Traditionally, Spotify's share of ad revenue was less than 10%, however this time it stands at 13%.
