Spotify has 83 million paid subscribers but investors not impressed

FILE PHOTO: The Spotify logo hangs on the facade of the New York Stock Exchange with U.S. and a Swiss flag as the company lists it's stock with a direct listing in New York

FILE PHOTO: The Spotify logo hangs on the facade of the New York Stock Exchange with U.S. and a Swiss flag as the company lists it's stock with a direct listing in New York

Published Jul 29, 2018

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INTERNATIONAL - Spotify has revealed their second-quarterly earnings and the music streaming service now has 83 million paid Premium subscribers. 

Compared to January, this is an increase from its last total of 70 million.

Spotify boosted its customer base to 180 million in the second quarter, more than the average 178.5 million forecast from analysts. 

According to a report by Bloomberg, the company's shares fell as much as 5.6 percent in early New York trading and this had investors not feeling positive. 

However, when compared to its largest rival Apple Music, it is ahead as Apple last announced in April that it had only just passed the 40 million subscriber mark.

According to a report in The Wall Street Journal from February, Apple’s service may be on track to beat out Spotify by the end of the year.

One possible concern is that growth of Spotify’s free service appears to be slowing. 

The company reported fewer users of the advertising-supported tier than a quarter ago, although the base grew by 23 percent year-over-year.

- BUSINESS REPORT ONLINE, BLOOMBERG

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