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YouTube just announced that YouTube Premium and YouTube Music combined make up more than 100 million users. That’s a fair amount, but it still pales in comparison to the number of people paying for Spotify. Spotify is one of the biggest streaming services in the world, and it just reached a pretty big milestone. According to a new report, Spotify just reached over 600 million monthly active users.
Now, it’s important to note the difference between users and monthly active users. The number of total users for a service is always much more than the number of monthly active users. Monthly active users account for the people who use a certain product within the span of a month. There are people who get Spotify, only to neglect it. So, metrics like the monthly active user base for a product are much more impressive because it’s the number of people actually using it.
Spotify crosses 600 million monthly active users
Spotify just posted its earnings report for Q4 2023, and it shows some pretty notable gains for the Swedish company. First and foremost, Q4 2023 saw the company surpass 602 million monthly active users. That’s a year-over-year increase of 23% compared to Q4 2022’s 489 million active users. It’s also a 5% Boost from Q3 2023’s 574 million active users.
It’s important to note that these metrics include all users, both premium and free. Of the 602 million users, 236 million are Premium subscribers. This leaves 379 million underpaid subscribers. To put that into perspective, both YouTube Music and YouTube Premium combined total about 100 million users, and that number includes the people currently on free trials.
Finances
In terms of finances, the company was able to rake in over €3.6 billion (~$4 billion) of revenue last quarter. That shows a 16% year-over-year increase from €3.16 billion ($3.4 billion) in Q4 2022. Also, it is a 9% increase from Q3 2023’s €3.35 billion ($3.6 billion). So, more money is coming into the company. We can’t help but think that part of this comes from the recent price hikes. However, Spotify constantly brings new features to entice people to subscribe.
However, no business is without its losses. The company sustained €75 million ($80.8 million) in losses, which is notably higher than how much it lost in Q3 2023, which was €32 million ($34.5 million). However, it pales in comparison to the massive amount of money it lost in Q42022, which was €231 million ($346 million).
So, it appears that things are moving up for Spotify, and people aren’t put off by the recent price hikes.
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