Recent statistics have shown that the company registered a stunning 217 million active users. To juice things up, Spotify has a record-breaking 100 million premium users. A number that is double the total number of Apple Music users. On the contrary, Spotify registers a lesser 2 million users in the US a dominant zone for Apple users. Moreover, by the end of the year’s quarter, the number of Spotify users is set to rise to approximately 228 million. Also, Spotify expects to have added at least seven more million users to their premium subscribers list. Also, the company is planning to venture into podcasts and generate a good amount of income. For this reason, the company intends to set out on an advertisement model for podcasts. With these in play, we can only conclude that the company is planning to enable individuals to place adds on podcasts. This will be similar to adds played when streaming music. In addition, Spotify has purchased podcasting companies like Gimlet Media, Parcast and Anchor. Moreover, Spotify is having a quarter million podcast titles within their streaming services.
Nonetheless, Spotify still records a massive loss of €142 million in the 2019’s first quarter. However, this has been a significant improvement to the previous quarter where they lost €169 million. Most of this successful drop in loss is accredited to the multiple implementation plans set to reduce loss. These include the closure of various channels with low subscribers. Alternatively, the company has also promoted failing subscriptions such as family account subscribers.
The chats are high for Spotify, and the profit margins are set to take this company up the limit. Moreover, the expected rise in subscribers is also set to push things higher to the next level. For this reason, Spotify is set to offer quality music and podcasts thus increasing the profits of Spotify. Despite all this, Spotify is set for a bumpy ride due to the tremendous amount of loss annually.