Spotify’s Monthly Active Users Hits 286 Million During COVID-19
In Q1 2020 Spotify exceeded subscriber forecasts, with the number of global Premium Subscribers reaching 130 million (up 31% year-on-year), while total Monthly Active Users hit 286 million, also representing a year-on-year increase of 31%.
Spotify did note that there was a notable decline in Daily Active Users and consumption in markets that were hardest hit by the COVID-19 pandemic, such as Italy and Spain. Despite this fall in daily usage Spotify said that “new and reactivated Monthly Active Users grew substantially during lockdown periods in major markets”.
Listening trends have changed dramatically in the last few weeks, with Spotify noting that listening time around activities like cooking, doing chores, family time, and relaxing at home have recorded double-digit growth, while listening from car, wearable and web platforms has dropped, given people are making less commutes.
Although Spotify’s ad-supported revenues fell short of expectations, they were still up 17% year-on-year. Premium revenue, which makes up the bulk of Spotify revenue, grew by 22% year-on-year, which was largely in line with expectations.
Spotify said that COVID-19 contributed to lower expenses in Q1, and that it plans to slow the pace of hiring for the remainder of the year due to uncertainty surrounding COVID-19.