In a nutshell: Spotify in its third quarter report completed the three-month interval ending September 30, 2022, with 456 million complete month-to-month energetic customers, a 20 p.c improve 12 months over 12 months and 5 p.c greater than the earlier quarter. Damaged down additional, that works out to 195 million premium (paying) subscribers and 273 million ad-supported customers, representing will increase of 4 p.c and 7 p.c quarter over quarter, respectively.
Spotify reported an working lack of €228 million for the quarter on income of €3.04 billion, the latter of which represented a rise of 21 p.c 12 months over 12 months.
CFO Paul Vogel stated 2022 has been a 12 months of funding. It is too early to supply steerage with respect to 2023, however the govt stated they do anticipate profitability charges to enhance subsequent 12 months relative to 2022.
Talking of paying subscribers, CEO Daniel Ek stated a Spotify worth hike could be coming someday in 2023. Premium subscribers within the US at the moment pay $9.99 per thirty days for a person plan, $12.99 for 2 accounts or $15.99 for a household plan that affords six accounts. Particular person plans for college students are priced at $4.99 per thirty days.
A worth improve for Spotify appears par for the course, particularly at this stage of the sport.
Apple earlier this week introduced worth hikes for a number of subscription companies together with Apple Music and Apple TV+. Final week, YouTube elevated the value of its Premium household play by $5 per thirty days and invited clients to share their suggestions on the speed change. Disney over the summer season introduced will probably be growing costs beginning in December, and Netflix hiked costs throughout the board for US subscribers in the beginning of the 12 months.
Spotify final month launched an audiobook division with 300,000 titles, little doubt going after rivals like Amazon and its Audible service. Notably, the audiobook push is a standalone division with à la carte pricing which means there is no such thing as a low cost for paying Spotify Premium subscribers.
Spotify’s inventory is down greater than 12.5 p.c and is buying and selling at $84.98 as of this writing.
Picture credit score: dlxmedia, Alexander Shatov