Spotify, an audio streaming & media services provider, has reportedly announced a significant expansion of new users to 25 million during the Q4 of 2020. The company also revealed that India served as a key contributor to its growth in the December quarter.
In total, Spotify’s MAUs (monthly active users) surged by 27% on a Y-o-Y basis, recording an increase from 271 million users in the Q4 of 2019 to 345 million users in the Q4 of 2020. Additionally, its premium users also grew by 24% from 124 million to 155 million, while the ad-supported usage increased from 153 million to 199 million Y-o-Y.
Spotify has reportedly cited that the service has witnessed rapid growth in India, Western Europe, and the U.S., with India serving as a major market owing to the successful marketing campaigns. The service also has identified that the usage of podcasts has been a factor aiding the accelerated net additions.
In terms of revenue, Spotify registered a 17% hike from $1.85 billion in 2019 to $2.17 billion in 2020, while its gross profit surged by 21% from $474 million to $575 million Y-o-Y. Based on region, Europe still remains as its largest market, holding 35% of the total MAUs. Latin America and North America, on the other hand, account for 22% and 24% of the users respectively, while the rest of the markets account for 19% of the users.
According to Spotify, high prominence of the service in India is driven by Spotify Premium Mini, which provides maximum benefits to the users such as daily or weekly subscriptions at ₹7 or ₹25,for ad-free music as well as downloads of over 30 songs on their devices. In the global scenario as well, podcasts and other non-music content highly contribute to its expansion.
The statement further added that the service is anticipating a robust growth in podcast consumption, as it drives higher lifetime value (LTV) and retention of the user base.