Spotify earns more per free account due to significant increase in advertising revenue

Advertisements delivered Spotify 323 million euros in revenue in the past quarter. This is 75 percent more than a year earlier. This increase is striking because the number of free accounts increased by ‘only’ 19 percent in the same period.

This means that Spotify is able to collect more money per free account, according to the quarterly figures. According to Spotify, this is because the company was able to sell ads for a higher price, but also because there was more demand within the Spotify Audience Network. This is Spotify’s podcast advertising program. Advertising revenue is expected to be above expectations, especially in the United States and the United Kingdom.

Spotify now has 220 million monthly active users without a subscription. The number of Premium subscribers is still slightly lower, at 172 million. The number of paying users also increased by 19 percent in the past quarter. The music streaming service now has a total of 381 million monthly active users.

Revenue from Premium subscribers also grew faster than the number of subscribers in the past quarter. This turnover grew by 22 percent compared to a year earlier. In the past quarter, Spotify achieved a turnover of 2.178 billion euros.

Like the previous quarter, the number of podcasts increased by three hundred thousand on a quarterly basis. There are now 3.2 million podcasts on the platform. Spotify also says that more users are listening to podcasts, without giving too many details. The company does report that users who listen to podcasts did so 20 percent more in the third quarter than last year.

In the third quarter of 2021, Spotify’s turnover amounted to 2.5 billion euros, 27 percent more than a year earlier. Net profit amounted to two million euros, while a loss of 101 million was incurred in the same period a year ago.