wordpress blog stats
Connect with us

Hi, what are you looking for?

,

Spotify records modest growth, replaces weekly, daily plans in India with ‘Premium Mini’

“In Q4, we added 25 million MAUs and benefited from faster growth in India, US, and Western Europe, with India serving as a notable source of upside vs. our forecast driven by successful marketing campaigns,” Spotify said in their press release for their Q4 2020 earnings. As before, the region India is in, “Rest of World”, accounts for the smallest number of Spotify users, at around 19%. The company didn’t significantly exceed its prior guidance of how it would perform, indicating that the boost additions received from the COVID-19 lockdowns has subsided.

  • Premium Mini in India: Spotify launched a stripped down version of its Premium offering in India for just Rs 25 a week. The company said the launch, which also happened in Indonesia, was “of note”, but did not elaborate on results, perhaps because the service, which has also been released in Indonesia, has just been launched. Premium Mini appears to be replacing a weekly or daily premium subscription option that already existed with a watered down version, indicating an upsell strategy rather than a sachet strategy.
  • ARPU declines: “Within Premium, average revenue per user (“ARPU”) of €4.26 in Q4 was down 8% Y/Y (but down only 3% Y/Y in constant currency terms vs. down 6% Y/Y in Q3),” Spotify said. The company said that it has increased prices in many territories and has seen “highly encouraging” results come out of that. Price increases have been happening across the board, but India has been spared (as is the case with international streaming services in the country; Netflix has taken service tax and GST hits to avoid changing its pricing in India, even as it constantly adds to its monthly price in other parts of the world).
  • 2021 trends not certain: The company said that the pandemic’s impact was, all things considered, slightly positive in 2021, even as ad revenue took a hit. “Looking ahead, we are optimistic about the underlying trends in the business into 2021 and beyond, however, we face increased forecasting uncertainty versus prior years due to the unknown duration of the pandemic and its ongoing effect on user, subscriber, and revenue growth,” the company said.

Financial snapshot — Q4FY20

  • Revenue: €2.17 billion (up 27% YoY, up 8% QoQ)
  • Gross profit: €575 million (up 21% YoY, up 9% QoQ)
  • Premium subscribers: 155 million (up 24% YoY, up 7% QoQ)
  • Ad-supported MAUs: 199 million (up 30% YoY, up 8% QoQ)

Letter to Shareholders | Press Release

Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.

News

Find out how people’s health data is understood to have value and who can benefit from that value.

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ