Spotify Premium is a music streaming service that offers offline listening, no ads, and unlimited skips for $9.99 USD per month. They also offer student and family discounted plans. The number of Premium subscribers has increased by 32% over the past year and Spotify hopes to reach nearly 110 million subscribers by the end of the current financial quarter.
Altogether Spotify has over 217 million listeners in 79 countries. The service recently expanded into India and have already garnered more than 2 million listeners. Spotify is optimistic that Indian market will prove to be lucrative.
Although Spotify has experienced significant growth over the last year, they have also sustained substantial losses. The company reported $158.3 million in losses, primarily due to increased operating expenses. They also noted that the increase in their stock prices led to more spending on “social costs” or expenses like employee salaries.
How does Spotify plan to make up for their losses? The company appears to be relying on their collaborations with other companies and their recent investments in podcasts. The recently purchased podcast companies Gimlet Media, Anchor FM, and Cutler Media, LLC and intend to improve their podcast “targeting, measurement, and reporting capabilities”. These acquisitions could potentially give Spotify an edge over thei main rival Apple. Although Spotify is one of the number one music streaming services, Apple has long dominated the podcast market.
Spotify has also recently collaborated with a number of companies like Google, Amazon, Hulu, and Sony. Spotify is available on “Playstation Music” and users can listen to music while playing games. Spotify Premium also recently added Hulu to their subscription.
Spotify will need to continue to contend with Apple. Apple has also fostered several of their own collaborations. For example, Verizon Beyond Unlimited Wireless plans recently gained unlimited access to Apple music. The companies are also fighting a legal battle. Spotify recently filed an antitrust complaint against Apple. They claim that Apple’s 30% tax for digital streaming services discourages customers and competition. It remains to be seen how this lawsuit will ultimately be resolved.