Spotify becomes world’s first music streaming platform to surpass 200 million paid users

Swedish music streaming platform Spotify has become the world’s first music streaming company to achieve the most extensive paid user base. The company recently announced that its premium subscriber base had touched 205 million. Spotify also claimed that its paid user base represented a 14% year-on-year increase. According to the company’s Q4 2022 earnings report, Spotify’s monthly active users (MAUs) also saw a 20% YoY increase to reach 489 million.
However, the company faced some shortfall on the revenue front as it posted an operating loss of around $250 million for the quarter. Spotify’s CEO, Daniel Ek even took to Twitter to announce the “great platform growth” that the company delivered in Q4 2022. Ek mentioned that the company ended 2022 ‘strongly’ despite being a challenging year. He also confirmed that Spotify is expected to “move faster with more intensity of effort” and the company will also drive “even greater efficiency in 2023.”

How Spotify performed in Q4 2022: More details
In Q4 2022, the net additions to MAU reached a quarterly record-high of 33 million. The MAU additions were 10 million above guidance. The platform’s subscriber growth has outperformed its guidance expectations with 3 million more net additions.

According to a report by IANS, Spotify has claimed that the company is pleased with its overall results after looking back on the entire 2022. The company also said that “each year presents certain challenges and opportunities.” Over the past 12 months, the company claims to have largely delivered on their internal goals. Spotify also mentioned that the company is even excited about the momentum it is building while heading into 2023.
Last week, Spotify reduced its global workforce by 6% as it laid off about 600 employees. Ek took the blame on himself by announcing that he became too ambitious in investing ahead of their revenue growth.
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