Spotify, after raising prices in 53 countries, quickly announced its Q2 results for 2023, and it’s a familiar story of big numbers going up, while one or two go down: paying Premium subscribers now totalling 220 million (up by 17% year-on-year), total Monthly Active Users (MAUs) up a whopping 27% YoY to 551 million, a large number possibly connected to another large number: Ad-Supported MAUs also went up by 34% YoY to 343 million.
Premium subscribers contributed €2.77 billion in Q2, and Ad-Supported users another €404 million. The company reported a €247 million operating loss, adjusted to a €112 million loss.
One number went down again: ARPU, the average revenue per paying user, fell to €4.27, down from €4.32 in Q1. As a point of reference, Spotify’s ARPU has been falling as its paying subscribers numbers have gone up, from €6.84 back in 2015, to €4.89 in Q2 2018. By 2019, we reported that labels were concerned about this drop – but of course, as subscriber numbers have rocketed and ARPU has dipped, more money overall has entered the business.
(We mused yesterday that this week’s price rises might help nudge this ARPU figure upwards again towards the €5 mark.)
The market’s response? Spotify’s share price dropped sharply by another 14% to $140 – a figure still significantly up from $81 in January.