Spotify announced €217 million in advertising revenues in 2019 – up 23% year-on-year.
The popular music streaming platform that now accounts for the lion share of US music consumption just reported revenues of more than $2 billion in Q4 2019, up 24% from Q4 2018. However, operating losses continue to present a challenge for the company ($85 million during Q4).
It’s not deterring listeners and the number of subscribers during the quarter was up 31% to 271 million. Spotify now has 125 million paying users. That’s 29% more than in the previous year.
Some of this growth is due to podcasts which grew 200% in terms of monthly active users.
Chris Beer, Senior Trends Analyst, at GlobalWebIndex, said:
“As the results show, the company has ridden the crest of a wave with podcasts, making the platform a popular, easy-to-use hub for podcast listening just as they’ve broken into the mainstream. In the last quarter, almost half of its users, on any pricing tier, were listening to podcasts, and they’re becoming a vital part of Spotify’s bottom line.”
User growth was some of the strongest, the platform has experienced to date.
“Spotify has continued to successfully convert its free users into premium subscribers, with 40% of listeners on a paid-for account, compared to 35% this time two years ago,” Beer added. “It’s still working hard to monetize its free tier of users, and our research shows its free users are 48% more likely to discover brands through sponsored messages or ads on podcasts. With the company’s announcement of new ad technology earlier this month, both advertisers and creators are better placed to understand the most effective messaging.”
The streaming platform is currently working on a new marketplace that could help artists monetize their music more effectively and provide additional tools for producers of podcasts.