Spotify Quarterly Earnings Takeaways
The Spotify Quarterly Earnings report showed an astonishing amount of Subscribers. Currently Spotify Premium has 113 million subscribers and 141 million ad-supported subscribers “free version”. It is clear that Spotify is staying ahead of Apple music and Amazon in engagement and reach. Spotify is really honing in on their brand expansion across new markets such as Latin America and India. The brand is being baked into the advertising and expansion of artists in these new markets.
By getting behind the artists Spotify is able to become intertwined to the local culture and talent pipeline related to music. Spotify is strategically aligning with large corporations such as Google to try to become fully integrated into peoples lives (homes, cars, etc.). The Spotify Quarterly Earnings Report expands upon the promotion of Family Plan Subscribers getting a free Google Home simply for being a subscriber of Spotify. By partnering strategically with large corporations and the focus on joining the cultures of markets they are entering; Spotify has been able to capture bright future prospects for users and their experience on the app. Spotify for Artists has been a hit for artist trying to Partner and gain tools from Spotify. This is another example of Spotify trying to integrate their brand into creators and consumers minds alike.
One area Spotify saw a surprising growth on their platform and positive effects as a result was Podcasting. Over 14% of Monthly Active Users also listed to at least one full podcast episode. Although it is early in the days of podcasting, Spotify is proving to be a destination for creators and listeners alike. Spotify is also pulling a play out of Netflix’s book by focusing expanding their own generated content for podcasts including investing in the hosts themselves. This is a genius moves that allows the brand of Spotify to continue to be looked at as a fully integrated audio-technology company. The podcasting industry as a whole is still in its infancy; as the market expands massively over the next ten years Spotify will be in place to capture the most incremental value. Spotify in this quarter alone saw 22 of their own shows launch with tremendous engagement.
Subsequently, Spotify is expanding usable tools and dashboards for podcast producers to attract new producers towards the platform. This theme is evident in the previous aquisitions of companies such as Anchor, SoundBetter, and Gimlet. Apple Music and Amazon music have not laid the infrastructure that Spotify has for future capturing on a quickly expanding medium. Spotify is without a doubt ahead of the game when laying the infrastructure for the future of audio and the experience around it. Competitors have been unable to match the velocity of Spotify’s moves on emerging markets due to the nature of music as well as some wit/experience. The app experience of course always brings people back to the best music listening experience possible allowing for massive leverage for Spotify and where they want to steer the industry.